ISLAMABAD - The National Assembly’s standing committee on commerce on Tuesday proposed to discourage imports by imposition of taxes and regulatory duties in order to control soaring trade deficit, which was recorded at historic level of $32.58 billion during last fiscal year (FY17).

The parliamentary committee, which met under the chairmanship of Siraj Muhammad Khan, MNA, showed its concern over increase in trade deficit and decline in exports. Pakistan’s trade deficit was recorded at historic level of $32.58 billion during last fiscal year (FY17) because of the record increase in imports and continuous decline in exports, the committee was informed.

The country’s imports were recorded at historic level of $53.02 billion during the FY17 as against $44.69 billion of the FY16, showing an increase of 18.67 percent. However, the exports registered a decline of 1.63 percent and were recorded at $20.45 billion during previous financial year as compared to $20.79 billion of the preceding year.

The committee members also showed concerns over the continuous decline in exports. However, the officials of the ministry of commerce informed the committee that exports had started to increase due to the Prime Minister’s incentives package worth Rs180 billion. They informed that exports recorded growth of 16 percent in June 2017 as against the same month of the preceding year. Pakistan’s exports enhanced to $1.91 billion in June 2017 from $1.65 billion of June 2016.

Meanwhile, they said that imports have recorded increase due to import of machinery in the country. The committee recommended the Ministry that import of the commodities/products, which are produced within Pakistan, should be discouraged by imposition of taxes, tariffs and regulatory duties.

The Committee was briefed by the Ministry that no PTA/FTA has been signed by the present government, from 2013 to 2017. The officials of the ministry of commerce informed the committee that government is currently reviewing PTA/FTA with different countries including China and Turkey.

The Committee was briefed by the Ministry that due to enhanced rates of oil, gas and electricity, the industries are facing problems to compete the international market resulting into decline of exports causing trade deficit. It was informed to the Committee that now the electricity and gas is regularly and continuously provided to the industries. It was recommended by the Committee that instead of giving cash subsidies to the industries, rebate on the rates of electricity and gas should be granted to all the industries. It was directed by the Committee that the exemption of General Sales Tax (GST) on exports of all commodities/products should be considered by the Ministry.