Government is considering to review trade agreements FTAs and PTAs. Pakistan have Free Trade Agreement with China, SriLanka, and Malaysia. Preferential Trade Agreement with Indonesia, Iran, Maurities, and Indonesia. There is vast imbalance in foreign trade. Imports worth near about 45 Billion dollars and Exports 25 Billion Dollars ,this does mean there is gap of 20 Billion dollars, which we pay as price of imports. Deficit trade leads to depreciation of currency, thanks to foreign remittances that save currency from further devaluation.
Trade agreements are signed keeping in view the domestic Industry, which is directly impacted from foreign imports, therefore tariffs and custom duties are levied to bring the prices of foreign goods in par with local goods. There is great need of policy making in the field of foreign trade as our imports are increasing day by day, creating problems of foreign reserves; the payment of these commodities in foreign currency.

Current account is the broadest measurement of foreign trade, covering flow of goods and services and foreign direct investment. Current account deficit reflects that country is spending more on foreign trade or imports than earning on exports and is borrowing more capital from foreign sources. Major reason of the deficit Pakistan face today is increasing imports and less FDI as well as more borrowing from IMF and other international sources. Fortunately foreign remittances worth $18 billions in first three quarters of this fiscal year coupled with less payments on external debt servicing $4.2 billions as compared to $7 billion in last year, has saved the account from further decline.
According to SBP press release CA deficit stood at $2.486 billions as compared to last year's $2.457 billions........


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