Pakistan's trade deficit with India up four times since 2008

Pakistan's trade deficit with India has increased four times since 2008, according to the State Bank of Pakistan (SBP).
"Pakistan faced a deficit of USD 719.857 million in fiscal year 2008-09 with India, with imports payment of USD 1.033 billion and export receipts of USD 313.037 million," a SBP report said.
"The deficit of fiscal year 2009-10 surged up by 11 per cent with USD 1.061 billion in imports payment and USD 260 million export receipts."
The report said the balance further deteriorated during fiscal 2011 as Pakistan faced a deficit of USD 1.158 billion, compared to USD 802 million in fiscal 2010, marking an increase of 44 per cent.

The huge trade imbalance between the two countries has raised serious concern among Pakistani industries.
Local industrialists believe that since 1996, when India granted Most Favoured Nation (MFN)-status to Pakistan, the trade balance has remained heavily in India's favour.

Though Pakistan has not yet granted MFN-status to India, the number of items that can be imported from India has increased considerably.
The list started with only seven items when bilateral trade resumed after a gap of nine years in 1974. It soared to 800 items in 1996 after India granted MFN-status to Pakistan.
Under a negative list regime introduced by Pakistan last year, the import of only 1,209 items is barred from India.