Trade deficit with India rises

Published August 28, 2004

ISLAMABAD, Aug 27: Pakistan's trade deficit with India rose by 201 per cent to more than $288.6 million during the fiscal 2003-04 against $95.845 million registered in the previous year.

Officials said on Friday that the increase in the deficit was because of the large quantum of imports of animal feed, raw cotton and chemicals during the year under review by comparison with the previous year's volume.

It was only in 2002-03 that the trade deficit had declined by 30 per cent because of the suspension of air, train and bus services in December 2001 that subsequently resulted in lower trade volume between the two countries.

The level of total trade between the two countries stood at slightly over $476 million in 2003-04 against more than $237.1 million during 2002-03, showing an increase of 100.7 per cent.

Official statistics made available to Dawn showed that Pakistan's trade with India was in surplus in 1998-99 and stood at $27.807 million. During the past four years, the trade surplus transformed into deficit and stood at more than $73.7 million in 1999-2000; over $179.6 million in 2000-01, and over $137.2 million in 2001-02 and a little more than $95.8 million in 2002-03.

Pakistan's exports to India stood at $90.68 million in 2003- 04 against more than $70.6 million in 2002-03, registering an increase of 28.3 per cent. Indian exports to Pakistan rose to more than $382.3 million in 2003-04 against $166.509 million in the previous year, an increase of 129.6 per cent.

Product-wise, major exports to India showed that Islamabad's fruit and vegetable export to India declined by 8.4 per cent to little more than $19.5 million in 2003-04 against $21.343 million in 2002-03. For the first time, Pakistan exported molasses worth $2.718 and petroleum and its by-products worth $38.984 million to India during the year under review.

Statistics showed that no leather products were exported to India during 2003-04 and export of crude vegetable material declined by 52 per cent to $1.856 million during the period under review against $3.864 million in the previous year.

Islamabad exported cotton fabrics worth more than $7.8 million during 2003-04 against a little more than $3.7 million in the previous year, showing an increase of 112 per cent.

The export of wool, cotton yarn, cotton fabrics, made-up articles of textile materials showed no tangible growth during the year under review against the same period in the previous year.

And Indian export of tea to Pakistan rose by 30 per cent to more than $6.8 million during 2003-04 against $4.763 million in the previous year; animal feed grew to $28.008 million during the period under review from slightly over $1 million in the previous year; raw cotton at more than $56 million against $43,000 in the previous year; iron ore concentrates and steel at $31.051 million against $18.267 million in the previous year, an increase of 70 per cent; $144.954 million worth of chemical elements and compounds as against $59.529 million, an increase of 143.5 per cent.

Export of other Indian products to Pakistan during 2003-04 stood at $10.807 million worth of dyeing, tanning and colouring materials; $26.359 million worth of chemical materials and products; cotton yarn $8.432 million; $18.948 million worth of tyres and rubber tubes; $3.047 million worth of machinery and its parts; $6.925 million worth iron and steel manufacturers and $6.885 million worth manufactures of non-ferrous metals.

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