Weak world demand for its exports and domestic political uncertainty have contributed to Pakistan's high trade deficits. In FY 2008, the trade deficit was over $15 billion. In the 2008-2009 budget, the Government of Pakistan raised the maximum tariffs from the 20%-25% range to the 30%-35% range on 300 luxury items due to the large trade gap and growing current account deficit. In the 2009-2010 fiscal year, Pakistan’s trade deficit decreased to $10.92 billion as a result of a decline in imports and a slight increase in exports.
Major imports, which fell to $28.4 billion in 2009, include petroleum and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products. Energy imports account for nearly 30% of Pakistan's imports, and the total gap between electricity supply and demand in Pakistan is over 4,800 megawatts (MW). The ongoing energy crisis and security concerns, together with a decline in global demand, have hampered Pakistan’s textile-reliant export base. Pakistan's exports continue to be dominated by cotton textiles and apparel, despite government diversification efforts.
Major imports, which fell to $28.4 billion in 2009, include petroleum and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products. Energy imports account for nearly 30% of Pakistan's imports, and the total gap between electricity supply and demand in Pakistan is over 4,800 megawatts (MW). The ongoing energy crisis and security concerns, together with a decline in global demand, have hampered Pakistan’s textile-reliant export base. Pakistan's exports continue to be dominated by cotton textiles and apparel, despite government diversification efforts.
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