He was replying to a question from Senator Dr Muhammad Akber Khawaja on reasons of trade deficit in the last 12 months and measures taken by the government to boost exports.
The minister informed the Upper House that exports amounted to $14.4 billion whereas imports totalled $20.6 billion in 2005. Hiraj tried to cover the issue, saying that trade deficit increased due to economic revival as GDP increased by 8.4 percent, which created greater demand for raw material, consumer goods and machinery.
The import of machinery went up from $4.2 billion in financial year 2003-04 to $5.9 billion in 2004-05. The minister said that due to shortage of certain essential commodities like sugar, the government imported it to keep prices low.
Trade deficit during 2004-05 was due to increase in cost of imported items including petroleum products, food products, synthetic fibre, fertiliser, insecticides, plastic material, iron and steel, jute, rubber, crude, rubber tyres and tubes, Hiraj added.
Replying to a question raised by Senator Muhammad Ali Brohi, the minister informed the house that the country faced $178,115 million decrease in export of sports goods during 2004-05 whereas, decrease during 2003-04 was $221,873, which showed variance of $43,758 million.
Brohi asked the minister to inform the house regarding steps taken by the government to increase exports.
However, concerned minister was unable to satisfy the opposition and treasury members as same ambiguous answer of increase in import of raw material and machinery was repeated.
Senator Rehmatullah Kakar asked the minister to inform the house of the reasons due to which trade of fruits was not initiated by the government instead of Free Trade Agreement with Sri Lanka.
He demanded of the government to direct PIA to change its policy regarding export flights so the government may tackle this issue.
However, Hiraj tried to sideline the question saying that according to intentional standards, the government must have to improve quality of fruits, adding that the government was trying to rectify non-tariff trade barriers.
Senator Safdar Abbasi criticised the government, saying that trade deficit from July to November 2005 is $4.554 billion and previous year's deficit was $6.2 billion, adding that this situation is alarming and traders cannot survive if it prevailed.
Abbassi said that trade balance was showing continuous deficit for fifteen years but the government was not ready to face the challenges even of WTO regime, and demanded of the government to change the trade policies.
Senator Akber Khawaja said that commerce ministry has spent huge amount on foreign delegations, while the government's lofty slogans of economic uplift have proved fake.