20000328

Pakistan trade

deficit with

Kenya reduced

by $ 70m

RECORDER REPORT

KARACHI: Pakistan's trade balance with Kenya has improved as the exports have risen to $70 million from $30 million since last one year due to stringent policies adopted by High Commission for Pakistan in Kenya.

Hameed A. Kidwai, High Commissioner for Pakistan in Kenya during the Tea Convention, said that since last one year several chronic issues of Pakistani exporters had been resolved. Several hints had been provided to Kenyan importers to gear up the imports from Pakistan.

He said that Pakistan imports from Kenya were around $200 million and trade balance had always tilted towards Kenya. The exports from Pakistan were around $25 to $30 million. However, since last one year, exports from Pakistan has been doubled as the country received some fresh orders in cotton related goods and other commodities. Pakistan's exports now stood at around $70 million, indicating an improvement in trade deficit from $170 million to $130 million in last twelve months.

However, he pointed that our exporters were facing difficulties in selling their goods owing to heavy import duties imposed on the Pakistani goods. Kidwai said that a preferential trade agreement had been signed between the East African countries in which Egypt which though in North of Africa was also member of this committee, known as COMESA or Committee Members of East Africa.

The tariff imposed on several goods is zero rated while the goods exported from Pakistan have to pay 35 percent duty and 50 percent optional levy. Kidwai said that several presentations had been made to Government of Kenya to reduce the tariff structure. He hoped that soon the Kenyan government might withdraw 50 percent duty. The removal would help Pakistani exporters to increase their business in Kenya soon.

He said that Pakistan was the biggest importer of tea from Kenya despite the fact that the country had enough potential to produce tea in the country. About 140 acres of land is available to produce tea in the country and if properly utilized, Pakistan in the coming years would become an exporter rather importer of nearly $250 million worth of tea.