The exports of Pakistan have been $ 6.7 billion during the first quarter of 2008-09, while imports are $ 14.28 billion. The trade deficit for this quarter is estimated about $ 7.5 billion. There is a decrease of $ 1.5 billion in exports during the same period when compared to the corresponding period last year and trade deficit was 20.74 billion. The figures of the first quarter of 2008-09 show that the trade deficit will increase during the present fiscal year. It is becoming quite difficult for the government economists to bridge this gap between country's exports and imports. This huge trade deficit is not only sucking our foreign reserves quickly, but also increasing inflation. To bridge this gap between exports and imports, Pakistan has to bow before IMF and accept its conditions. In the trade policy for 2008-09, export target has been set but import target has not been mentioned. There is only statement from the trade minister that Pakistan will try to decrease the trade deficit. Due to fluctuations in the prices of oil and edible items, it has become difficult for government policy makers to set the import target. However, due to financial crises at international level, it has become difficult for Pakistan to meet its export target. If Pakistan wants to increase its foreign reserves, it has to increase its exports. Pakistan's exports are highly concentrated geographically. Pakistan should diversify its export market and explore new markets for its products. Although, Pakistan exports are also concentrated in terms of products, but it is quite difficult to include new products in the export product mix. The only available option is to increase the export of the present products. Main importing countries from Pakistan are European Union, United States of America, United Arab Emirates, Saudi Arabia, Afghanistan, United Kingdom and Germany. Pakistan is exporting more than 80 % of its exports to 20 countries only. Its major trade partner is United States of America and it is facing a financial crisis. This financial crisis will impact its imports. Independent experts are of the view that USA imports from Pakistan will decrease by 20-25 % during 2008-09 and it will affect the Pakistan's trade balance a lot. To avoid this situation in future, Pakistan should explore new export markets. Pakistan can increase its exports with the present exporting products. In this way, Pakistani manufacturers can use their resources with the full potential. They can also get economies of scale as well. Apart from textile products, Pakistan has registered growth in all other exporting categories during 2008-09. For example, exports of food group were up by 22.4 %, petroleum products by 38 %, exports of other manufactures and other items were up by 33.2 % and 59.5% respectively. In South America, apart from USA, Pakistani exporters have not paid much attention to other South American countries like Brazil, Argentine and Bolivia etc. Pakistan should strengthen its trade relations with other South American countries. These countries are progressing at the rate of 5-7 % annually. While Brazil's GDP rate is 8.5 % annually and stands second after China in the world. These countries can prove to be a good export market for Pakistani products. Pakistan can export sports goods and textile products to Brazil. In sports goods, football can be a very handy export good to Brazil. Similarly, football can be exported to Argentine as well. If commercial attachT play an active role, these countries can prove to be a good market of surgical instruments and pharmaceuticals as well. Pakistani exporters should give a vigilant look at the potential market of Africa as well. For the time being, the major trade partner of Pakistan is South Africa. Pakistan can boost its exports of sports goods, textiles products, pharmaceuticals and cement to African countries. Especially, Pakistan can boost its exports of pharmaceuticals to African countries because these can be exported at cheaper rate to these countries and mostly pharmaceuticals companies have ISO-9000 and other quality certificates which fulfill the requirement of export of pharmaceutical products. Private sector has to play a key role in enhancing the growth of exports. With the collaboration of Government, exporters have to explore new markets for their products, which were neglected in the past. If Government of Pakistan provides assistant and incentives to exporters of leather products, live stock, marble, food group, fisheries, pharmaceuticals and IT products etc., the exporters can boost the exports. Pakistan trade attachT have to be very cooperative with the exporters. They have to shun the traditional bureaucratic behavior and be very vigilant and active to provide necessary information about the new export markets to the exporters. -The writer is a student of SZABIST Islamabad and presently doing MBA.