KARACHI, Oct. 24: The FPCCI has expressed concern over the growing trade deficit during the first quarter (July-Sept) of the current fiscal year, which amounted to $3.6 billion, 13.53 per cent higher than $3.17 billion of the last year.

FPCCI acting president Qamar Zaman Gill said in a statement that the trade figures released by the Federal Bureau of Statistics (FBS) were alarming.

He said that every month imports exceeded exports, which resulted in widening of the trade gap. He said that the government had targeted imports at $28 billion and exports at $18.6 billion during 2006-07 with a trade deficit of $9.4 billion but at the end of the year it surpassed the deficit target to reach $13.53 billion.

He further added that Pakistan had also missed its export target by a wide margin of $1.59 billion and breached the import target by $2.54 billion, which will continue to grow if remedial measures are not taken.

Gill said in the era of free trade and globalisation Pakistan was confronted with many challenges but the main factor, which has badly affected “our economy is terrorism and bad law and order situation”.

He proposed to the government to take necessary measures to overcome the growing deficit by decreasing the utility charges through reducing the government levies on the utility services.

He sought exemption in duties on the import of basic raw materials, which are used in manufacturing of value added products.

He said that the Trade Development Authority of Pakistan (TDAP) should explore new markets for exports. He said that the entire South America and Scandinavian countries were still unexplored while the African market is dominated by Indian products. —APP