Pakistan says trade with India plunges significantly

Pakistan's central bank has said that tre between Islamab and New Delhi plummeted significantly this fiscal, apparently due to ongoing tensions with India over Kashmir issue.

State Bank of Pakistan data in first half of 2019-20 fiscal starting from July 1 showed that Pakistan's exports to India during period came in at an insignificant USD 16.8 million as compared to USD 213 million in first half of 2018-19, Dawn news reported.

But declining tre across border h t affected balance of tre which was still heavily skewed in favour of India, it said. Meanwhile, imports from India also fell to USD 286.6 million as against USD 865 million in same period. As a result, Pakistan's tre deficit with eastern neighbour amounted to USD 269.8 million.

India on August 5 revoked special status to Jammu and Kashmir and bifurcated state into two Union Territories, evoking strong reactions from Pakistan which has been trying to internationalize issue.

Pakistan reacted by downgring diplomatic ties with New Delhi and banning tre with India. ties have t recovered from jolt and tre and commercial activities have suffered.

central bank data showed that imports from China — country's largest tre partner — fell to USD 4.8 billion during July-December versus USD 5 billion in same period last year.

However, exports slightly rose to USD 936 million, up from USD 889 million in first half of 2019-20. This meant a tre balance with China at a negative USD 864 billion.

With second-largest partner, United Arab Emirates, re was some improvement as exports to Gulf country increased to $827m in period, from USD 638 million. This was driven by a significant decline in imports to USD 3.6 billion, down from USD 5 billion.

Pakistan has succeeded to drastically reduce current account deficit mainly through a cut in imports bill, which is also reflected in above-mentioned two cases.

(Im source - ANI)