• Wednesday, July 24, 2019

Trade with Pakistan at record high, Wells tells Congress

Discussion in 'Pakistan Economy' started by CrazyZ, Jun 15, 2019.

  1. CrazyZ

    CrazyZ FULL MEMBER

    Messages:
    1,167
    Joined:
    Mar 3, 2019
    Ratings:
    +0 / 1,189 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Trade with Pakistan at record high, Wells tells Congress
    Anwar IqbalUpdated June 14, 2019

    [​IMG]
    Alice G. Wells, Senior State Department Official for South and Central Asian Affairs. — AP/File

    WASHINGTON: The Trump administration has informed Congress that trade between the United States and Pakistan reached an all-time high in 2018, as Washington endorsed Islamabad’s budget re-emphasis on a relationship built on trade, not aid.

    Alice G. Wells, Senior State Department Official for South and Central Asian Affairs underlined this change in a written statement to the House Foreign Affairs Subcommittee for Asia, the Pacific and Nonproliferation. On Thursday, the panel began a hearing on the State Department’s 2020 budget requests for the South and Central Asian regions.

    Ms Wells informed the lawmakers that in 2018, US-Pakistan bilateral trade reached an all-time high, exceeding $6.6 billion.

    US exports to Pakistan rose 4pc to $2.9bn, also an all-time high, and the trade deficit sunk to 2pct, or $782 million. “Trade in agriculture was a particularly bright spot,” she said. US soybean exports went from $0 in 2014 to $689 million in 2018.

    She noted that Pakistan was a market of more than 200 million people, including a growing middle class, and that’s why it “provides ample opportunities for US trade and investment to grow further.”

    According to the US Trade Representative’s office in Washington, Pakistan is currently America’s 56th largest trading partner during 2018. US exports totalled $2.9bn while imports from Pakistan totalled $3.7bn. The US goods trade deficit with Pakistan was $783 million in 2018.

    The top US export categories in 2018 were: miscellaneous grain, seeds, fruits ($694m), cotton ($615m), iron and steel ($225m), machinery ($211m), and optical and medical instruments ($117m).

    US exports of agricultural products to Pakistan totalled $1.5bn in 2018, making the country the 19th largest agricultural export market. Leading domestic export categories include: soybeans ($689m), cotton ($615m), tree nuts ($49m), dairy products ($38m), and planting seeds ($37m).

    Pakistan was America’s 58th largest supplier of goods imports in 2018.

    US total imports of agricultural products from Pakistan totalled $126m in 2018. Leading categories include: rice ($31m), sugars, sweeteners, beverage bases ($30m), spices ($19m), processed fruit & vegetables ($9m), and snack foods ($7m).

    The top import categories in 2018 were: miscellaneous textile articles ($1.3bn), knit apparel ($809m), woven apparel ($586m), leather products ($121m), and cotton ($112m). US foreign direct investment (FDI) in Pakistan (stock) was $518m in 2017, a 25.7pc increase from 2016.

    Published in Dawn, June 14th, 2019
     
    • Thanks Thanks x 4
  2. Pak_Sher

    Pak_Sher SENIOR MEMBER

    Messages:
    2,345
    Joined:
    Dec 14, 2010
    Ratings:
    +5 / 1,448 / -6
    Country:
    Pakistan
    Location:
    United States
    Great news. Pakistan US economic ties are critical for both countries and job creation.
     
    • Thanks Thanks x 1
  3. Abdussamad

    Abdussamad BANNED

    Messages:
    890
    Joined:
    Feb 21, 2009
    Ratings:
    +0 / 354 / -2
    Country:
    Pakistan
    Location:
    Pakistan
    Interestingly software imports don't figure in the list of our top imports from the US. Widespread piracy ensures that we don't have to pay for software.

    Also interesting that an agricultural country like Pakistan imports so many agricultural products from the US. It's a reflection of the backwardness of our agricultural sector.
     
    • Thanks Thanks x 1
  4. Pak_Sher

    Pak_Sher SENIOR MEMBER

    Messages:
    2,345
    Joined:
    Dec 14, 2010
    Ratings:
    +5 / 1,448 / -6
    Country:
    Pakistan
    Location:
    United States
    Though agricultural economy is supposed to be the core product, Pakistan lacks behind in agricultural R&D. US is the best country to work with to learn new techniques& technologies. This trend should continue.
     
    • Thanks Thanks x 3
  5. American Pakistani

    American Pakistani ELITE MEMBER

    Messages:
    12,128
    Joined:
    May 30, 2010
    Ratings:
    +9 / 16,016 / -0
    Country:
    Pakistan
    Location:
    United States
    Given that we are a poor country, the trade deficit should be increasing in Pakistan's favor, but here it is shrinking in US favor. That means more imports. Who is making all these crappy policies.
     
    • Thanks Thanks x 3
  6. Kabira

    Kabira ELITE MEMBER

    Messages:
    12,102
    Joined:
    Jul 12, 2014
    Ratings:
    +12 / 9,608 / -28
    Country:
    Pakistan
    Location:
    Pakistan
    This is why rupee should continue to slide downwards to its real value.
     
  7. American Pakistani

    American Pakistani ELITE MEMBER

    Messages:
    12,128
    Joined:
    May 30, 2010
    Ratings:
    +9 / 16,016 / -0
    Country:
    Pakistan
    Location:
    United States
    Are you aware of the massive pressure and downside of devaluation? How are you going to able to keep up with loan installments? What about projects like Diamer Bhasha? Etc etc.
     
  8. IceCold

    IceCold PDF VETERAN

    Messages:
    14,298
    Joined:
    May 1, 2007
    Ratings:
    +5 / 13,846 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    So when is Trump administration putting a ban on this? In fact this should be right on the US agenda. Of they are telling it to congress they are actually conveying it to those senators on Indian payroll hey you have another card to play. Let's have a trade war with Pakistan as well.
     
  9. Protest_again

    Protest_again BANNED

    Messages:
    297
    Joined:
    May 19, 2019
    Ratings:
    +0 / 209 / -0
    Country:
    India
    Location:
    India
    I don't think that's the way to go about it. Rupee depreciation will only add to your misery. Poor will become destitute.

    Don't go by Turkeys example. Pakistan is not as industrially developed as Turkey so to take advantage of depreciated currency. Rupee lost about 40% in value so far, but still you seem to have not picked up the trend.

    First and foremost Pakistan must improve the security situation. Work on ease of doing business diligently. Attract foreign investment by promoting yourself. Control volatility in the stock market. Slowly but surely you'll come out.

    Further depreciation is not the answer.
     
  10. Starlord

    Starlord ELITE MEMBER

    Messages:
    12,057
    Joined:
    Sep 25, 2016
    Ratings:
    +9 / 15,344 / -1
    Country:
    Pakistan
    Location:
    Pakistan
    it should cross 10 Billion mark , Pakistan needs to get into America market and export more stuff ..
     
    • Thanks Thanks x 1
  11. CrazyZ

    CrazyZ FULL MEMBER

    Messages:
    1,167
    Joined:
    Mar 3, 2019
    Ratings:
    +0 / 1,189 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Finance internally with PKR. Did china get external loans to build the 3 gorges. Did America get outside loans to build hover dam?

    There is pain with devaluation....we must ensure that food inflation does not hurt the poorest. Outside that we don't have a choice but to devaluate the pkr.
     
    • Thanks Thanks x 1
  12. American Pakistani

    American Pakistani ELITE MEMBER

    Messages:
    12,128
    Joined:
    May 30, 2010
    Ratings:
    +9 / 16,016 / -0
    Country:
    Pakistan
    Location:
    United States
    Yes, we should build dams and stuff ourselves but are our people willing to do that? We have massive imports, what does that tells us?

    As for food, we should be #1 in exports of most fruits, rice, wheat, sugarcane, cotton, etc.
     
  13. Pakistansdefender

    Pakistansdefender SENIOR MEMBER

    Messages:
    2,186
    Joined:
    Sep 22, 2016
    Ratings:
    +1 / 1,782 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    They are not ready to engage us unless 3rd level people like Alice Wells.
    Not even pompeo and president even ready to engage or listen.. This administration is too full of itself and think that it some kind of privillage to talk to them.
    And that's why they have downgraded their contacts. Even poor ashraf ghani has tried everything to talk to anyone substantial in this administration with no luck..
    All Pakistan was banking on afghan peace process.. If it succeeds us would meet us and give us and fta perhaps.
    And ease some pressure on us.
    But imagine that process to fail ...
    These things take time and patience is running out..and kill all the taliban and the last remaining taliban would be as stubborn as there are thousands.
    They would not talk to the administration.
    The deal is going to be worked out but don't know if it is still going on or not .
    The US is too busy. Maybe they would leave but if they decide not to they it is also a problem for Pakistan
     
  14. CrazyZ

    CrazyZ FULL MEMBER

    Messages:
    1,167
    Joined:
    Mar 3, 2019
    Ratings:
    +0 / 1,189 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Business is business. America fought brutal shooting wars with Japan, China, Germany, and Vietnam. Far worse wars than anything going on in Afghanistan. Now they buy their exports with no questions. If American companies can profit from cheap products made in Pakistan....they will. Its on us to change our mindset and boost trade.
     
  15. Pakistansdefender

    Pakistansdefender SENIOR MEMBER

    Messages:
    2,186
    Joined:
    Sep 22, 2016
    Ratings:
    +1 / 1,782 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    But for introducing our products we need trade show and interaction of the officials which us is not ready at high level...
    Well Pakistanis needs to change a lots of things seriously...they need to produce and sell. Our importers just sit and looks towards government to provide them everything.. To even tell then every single point from where to buy machines to where to buy raw materials.
    So many rich people and no one has interest in industrialization.
     
    • Thanks Thanks x 1