The Federal Board of Revenue (FBR) has analyzed that the actual trade gap between Pakistan and China stood at between US$2-3 billion and not US$ 7 billion due to under-invoicing.
This has been stated by Fayaz Rasool Maken, Director of Customs Valuation, Karachi while briefing the Senate Standing Committee on Finance on Trade Gaps at the Parliament House on Wednesday.
It was misreported that the trade gap stood at US$ 6.75 billion between China & Pakistan.
The Chairperson of the Senate Committee also observed exaggerated figures in the letter, issued by the Pakistan Business Council, regarding the trade gap of Pakistan. For instance, all the members of the Senate Committee agreed that the figures for Afghan Transit Trade, to the tune of US$ 3.51 billion, have wrongly been added to the trade gap between Pakistan and China.
The members also agreed that the value of stuck cargo, to the tune of US$ 0.44 billion which was not cleared during 2022, has incorrectly been added to the trade gap figures of Pakistan.
In the reported news, discrepancies to the tune of US$ 7.5 billion have been claimed in import figures involving Pakistan’s main trading partners (i.e. China, Singapore, Germany, UK). The issue has been examined and analyzed to figure out the correct position and trade-related statistical limitations in the reporting mechanism.
The actual trade gap remains US$ 545 million which is subject to adjustments /off-setting as it may involve both over-invoicing and under-invoicing. Therefore, the figures/findings highlighted in said news report are presumptive and without taking into consideration the statistical discrepancies encountering trade between the two countries, the official added.