Pakistan’s trade balance still continues to be in the red zone and government should facilitate the growth of private sector through positive measures, which will help in promoting country’s trade & exports and reducing trade balance.

This was the upshot of a discussion of entrepreneurs at Islamabad Chamber of Commerce & Industry (ICCI). They said though country’s exports have improved by 37.78 percent during March, 2010, but this benefit has been offset by surging trade deficit which has increased by 41.89 percent during the same period due to 39.60 percent rise in imports.

Chairing the meeting, Zahid Maqbool, President, ICCI said that government should accord high priority to addressing problems of energy shortage, high utility tariffs, regressive taxation, high interest rate and surging inflation etc. which are major impediments in expanding business activities. He said resolution of issues will enable the country to arrest the growing trade imbalance.

He said instead of looking for enhanced inflow of foreign aid, government should strive for mobilization of domestic resources through progressive taxation, manufacturing for import substitution and export of high value added goods in order to achieve sustainable development.

He said only sound economic development will help the country in tackling multiple problems which include rising unemployment, squeezing purchasing power of people, shrinking economic activities, swelling inflation and dwindling living standards of people.

Businessmen said government should convince its international trading partners to help Pakistan by “trade first” not “aid first” and provide it easy access to their markets.

They said a clear-cut roadmap focusing on developing SME sector should be developed which will help in domestic resource mobilization and exports promotion. They were of the view that SME sector has the potential, if supported with soft credits and low interest rates, to give a boost to trade and encourage private sector investment.

Zahid Maqbool said that government should analyze carefully the latest trends in the trade balance and do everything possible in its power to minimize this imbalance to save the country from another crisis.