Wide gap pushes govt to search for dollars amid reluctance to take tough decisions
ISLAMABAD:
Pakistan’s trade deficit crossed $39 billion in first 10 months of the current fiscal year, as the pace of increase in imports was double than the surge in exports, leaving the new government in search of dollars amid its weakening will to take tough policy decisions.
The $39.3 billion gap between exports and imports during July-April was $11 billion more than the estimate for fiscal year 2021-22, which still has two months left, showed the trade bulletin released by the Pakistan Bureau of Statistics (PBS) on Friday.
The 10-month trade deficit was $15.4 billion, or over two-thirds, more than the same period of previous year, according to the PBS.
In the last year of the previous PML-N government, the trade deficit had been recorded at $37 billion in 2018, which now at the start of its new term stands at a level that cannot be sustained due to the dearth of foreign exchange reserves.
The central bank’s foreign currency reserves were constantly on the decline and dipped further to $10.5 billion at the end of last month – not enough to cover two months of imports.
The PML-N-led coalition government has simultaneously begun the process to revive the stalled bailout package of the International Monetary Fund (IMF) and also seeks loans from Saudi Arabia and the United Arab Emirates (UAE).
However, so far it has not met with any success and deals with friendly countries and the IMF remain elusive.
The revival of the IMF programme requires the reversal of fuel subsidies that now stand at Rs102 billion per month – a decision that requires political courage but has not been exhibited by the new government.
The fate of IMF mission to Pakistan for programme revival talks hinges on the new government’s ability to take the needed measures.
Imports in July-April FY22 increased by nearly half to $65.5 billion. In absolute terms, imports grew $20.8 billion, according to the PBS.
The pace of increase in imports was not slowing down significantly, which has taken a heavy toll on the foreign exchange reserves
tribune.com.pk
ISLAMABAD:
Pakistan’s trade deficit crossed $39 billion in first 10 months of the current fiscal year, as the pace of increase in imports was double than the surge in exports, leaving the new government in search of dollars amid its weakening will to take tough policy decisions.
The $39.3 billion gap between exports and imports during July-April was $11 billion more than the estimate for fiscal year 2021-22, which still has two months left, showed the trade bulletin released by the Pakistan Bureau of Statistics (PBS) on Friday.
The 10-month trade deficit was $15.4 billion, or over two-thirds, more than the same period of previous year, according to the PBS.
In the last year of the previous PML-N government, the trade deficit had been recorded at $37 billion in 2018, which now at the start of its new term stands at a level that cannot be sustained due to the dearth of foreign exchange reserves.
The central bank’s foreign currency reserves were constantly on the decline and dipped further to $10.5 billion at the end of last month – not enough to cover two months of imports.
The PML-N-led coalition government has simultaneously begun the process to revive the stalled bailout package of the International Monetary Fund (IMF) and also seeks loans from Saudi Arabia and the United Arab Emirates (UAE).
However, so far it has not met with any success and deals with friendly countries and the IMF remain elusive.
The revival of the IMF programme requires the reversal of fuel subsidies that now stand at Rs102 billion per month – a decision that requires political courage but has not been exhibited by the new government.
The fate of IMF mission to Pakistan for programme revival talks hinges on the new government’s ability to take the needed measures.
Imports in July-April FY22 increased by nearly half to $65.5 billion. In absolute terms, imports grew $20.8 billion, according to the PBS.
The pace of increase in imports was not slowing down significantly, which has taken a heavy toll on the foreign exchange reserves
Trade deficit peaks at $39.3 billion | The Express Tribune
Wide gap pushes govt to search for dollars amid reluctance to take tough decisions
