A RECORD TRADE DEFICIT

 May 30 - June 05, 2005 
ISSUE # 22 

The exceptional increase in trade deficit estimated at $4.3 billion during first nine months (July-March) is likely to reach $6 billion at the end of the current financial year 2004-05.
Stemmed from persisting imports of machinery and equipment and the costly oil were the major contributors to the largest trade deficit ever reached in the history of Pakistan offsetting otherwise an impressive growth of 14.6 percent in export earnings during current financial year. Pakistan's trade deficit rose by 141.52 percent in ten months of the current financial year as compared to the corresponding period of the last financial year.

 

 

 

 

SEAFOOD EXPORTS
On the back of 43 percent anti-dumping duty imposed by the United States on seafood imports from China and India, seafood exporters from Pakistan were expecting a stellar growth of 25 percent in their shipments to cross $170 million mark at the outset of the fiscal year.
Though they were judiciously expecting to capitalize the opportunity as Indian and Chinese seafood exporters cater to 50 percent of the total seafood imports of the US, yet they would have to take pains for improving quality and health standards of the food items in view of the choosey markets.

BANKING SECTOR REFORMS IN INDIA
Dr. Y. V. Reddy, Governor, Reserve Bank of India recently came to Pakistan to attend a meeting of Asian Clearing Union. Taking advantage of his presence, Dr. Ishrat Husain, Governor, State Bank of Pakistan invited him to deliver a talk on banking sector reforms in India. His presentation was keenly attended by a large number of bankers and executives from other financial institutions.

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