Pakistan trade the deficit exceeded $39 billion. in first 10 months of in current fiscal year pace of increase in import was double than a splash in exports, leaving new government in Search of dollars amid the weakening of his will to tough policy decisions.
The gap between exports and imports in the amount of $39.3 billion in July-April amounted to $11 billion. more than the score for fiscal year 2021-22, before which two more months left showed trade bulletin issued by the Pakistan Bureau of Statistics (PBS) on Friday.
10 months trade the deficit was $15.4 billion, or over two-thirds, more than the same period of previous year according to PBS.
in last year of previous PML-N government, trade the deficit was fixed at $37 billion. in 2018 which is now on start of This new term is at a level that cannot be maintained due to a shortage of foreign exchange reserves.
The central bank foreign exchange reserves of Russia are constantly on in decline and dropped even further to $10.5 billion at the end of last a month is not enough to cover two months of import.
PML-N led coalition government simultaneously began the process of reviving the stalled financial aid package of International Monetary Fund (IMF) and also seeks loans from Saudi Arabia and the United Arab Emirates (UAE).
However, so far this is not met with Any success and deals with friendly countries and the IMF remain elusive.
rebirth of IMF program needs to be canceled of fuel subsidies, which now amount to 102 billion rupees per month. decision which requires political courage but has not been demonstrated new government.
Fate of IMF mission to Pakistan for the revival program talks about loops on in new governments ability take the necessary measures.
Import in July-April of fiscal year 22 increased by almost half up to 65.5 billion dollars. In absolute terms, according to PBS, imports rose by $20.8 billion.
pace of increase in imports have not slowed down down significant, causing heavy damage on foreign exchange reserves.
last PTI government It was set an annual import target of US$55.2 billion that was breached in ninth month of current fiscal year.
Higher global commodity prices also contributed to the growth of imports with countries inability push second phase of industrialization.
Central bank introduced cash margin requirement (CMR) for import of goods, in addition to reducing consumer financing to ease the pressure on import. But these measures are not help.
The currency was also depreciated more than 50% to do import expensive. However, these measures proved to be ineffective. in containing in current account deficit, which was already expanded to over $13 billion in in first nine month of 2021-22.
Export increased one-fourth in in first 10 months of current fiscal year and amounted to $26.2 billion. against $21 billion in same period of previous year, according to PBS. In absolute terms, there was an increase of $5.2 billion in export.
Ministry of Commerce now predicts exports will reach $31 billion. in in full fiscal yearwhich is significant higher than the original projections, and it will for in first the time when exports exceed $30 billion.
Annually, in In April 2022, imports were recorded at $6.6 billion, indicating an increase of $1.4 billion, or 26%, compared to the same month year back, PBS reports.
PBS stated that the export of goods amounted to $2.9 billion. last month, higher by almost 30%, or $655 million, over the same month of previous year.
Hence, trade the deficit has widened one-fourth year-on-year up to $3.7 billion in April.
governments trade policy was influenced by a few selected exporters, who pressure for cash transfers, leaving the export base narrow and restricted to a few sectors.
On a month-on-month basis, exports increased 3.2% to $2.9 billion. in April 2022 over March 2022 showing growth of $91 million. Import also showed an increase of 3%, or $190 million, on month-on- monthly basis.
how result, trade the deficit widened to $3.7 billion. in April, up almost 3%, or $99 million, on month-on- monthly basis.
Published in Express Tribune, May 7th.th2022.
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