Trade deficit increased 100.6 percent YoY, thanks to brilliant policies of finance minister Shaukat Tareen

[Patriot forever]

Most of the vaccine doses in Pakistan have been donated, or covered under various programs, and not purchased.

To some extent yes not the whole, but they do show in import receipts which are later adjusted by SBP.

Not to mention the $2b+ rollout of pure machinery imports under TERF for capacity enhancement.

 

[FOOLS_NIGHTMARE]

Grappling with a chronic trade deficit

Grappling with a chronic trade deficit

Policymakers are considering measures to curb surging imports which will not affect the 4.8pc growth target for this fiscal year.

www.dawn.com

 

[313ghazi]

It all depends on what the deficit is made up of. If it's things that will drive industry in our country, it's not all bad, if it's things we can't go without, like oil - we don't have a choice. If it's made up of Cheese, Tea and PS5's then we need to consider taking steps to reduce it.

 

[Flight of falcon]

This deficit is a lot different than our past deficits where Nawaj worked hard to turn Pakistan into one of the fastest imported consumers market. This deficit is a mix of high oil prices and machinery .

 

[Patriot forever]

Grappling with a chronic trade deficit

Grappling with a chronic trade deficit

Policymakers are considering measures to curb surging imports which will not affect the 4.8pc growth target for this fiscal year.

www.dawn.com

A good article.

Just to update cotton figures have now crossed 3.8m bales as of October fortnightly arrivals a 100% increase ( even after taking into consideration the early cycle this year of cotton the overall output is expected to be more that will provide relief to cotton imports but on the other hand as the textile exports grow so will the cotton demand).

Regarding food imports it is necessary to take into account the growing population ( estimated wheat consumption is projeted at 30m tons this year *correct me if I wrong*) and the Afghanistan equation into consideration (KPK is already facing tough situation) . That is why strategic reserves is very important. In the long term MSP (minimum support price) needs to be adjusted which is happening, will incentivize our farmers and make agriculture a profitable business also will help with the fertile land erosion to real state. Along with subsidies on DAP ( which needs to be increased further as international prices have increased > 50% this year, fertiliser mix is critical in crop yield per acre). These 2 steps will help in food security.

As of now 80% of estimated CAD is due to international commodity inflation cycle and 20% is due to increase in consumption based on average prices over a period of time . In this scenario it is very important that international inflation is passed down to a desirable proportion so that consumers practice rationalisation in their use.

Tariff regime is already high on luxury imports and it is not the solution and will have little impact, the % of these imports is very minimal rather the increased is coming from essential commodities like crude and gasoline, palm oil, steel scraps, coal, LNG, pulses, tea and raw materials.
The recent auto sector adjustments will start from October and will be effective from Nov/Dec as cars are pre booked. We should have avoided CKD segment and limited it to CBU as local auto assembly sector does not get affected.

Nevertheless we should find innovative ways to confront this challenge as it is broad based commodity inflation cycle not just crude and is driven by increased liquidity injection by major economies to jump start growth after corona and production side not keeping its pace with consumption globally.

 

[Asian.Century]

Shaukat Tarin's name is on Pandora Papers just released!

 

[Flight of falcon]

Shaukat Tarin's name is on Pandora Papers just released!

And so …. I have an offshore account. It’s completely legal and there is nothing wrong .
What is wrong if the money transited through that account and the source is not provided . He is not accused to buying anything or having any transaction through that account.

it is very common here to have offshore accounts ….. have you ever wondered why most ships are registered in Panama ?

 

[Pak Nationalist]

do you know that the debt ratio as percentage of GDP has gone down significantly ???
Probably not. Randi Rona is cheap.

this government saved your non tax paying corrupt *** from destroying Pakistan .
You should be thankful that they took long over due hard decisions and have managed to put economy on the right track.

You have confessed that you don’t pay taxes….
start paying taxes …. Every Rs that you eat is haram on you and your family.


Who are you to complain about economic collapse …. What right you have to complain. You don’t pay tax is the same as someone who doesn’t vote. They have no right to complain.

//Public debt, including guaranteed debt, reached 87.9 percent of GDP at end-December 2020, up from 86.7 percent of GDP at end-December 2019.//

Overview

Get the latest World Bank data, research and development indicators for Pakistan. Access economy facts, statistics, project information, development research from World Bank experts and breaking news.

www.worldbank.org

Au contraire, our debt to GDP as a percentage of GDP is increasing.

 

[Patriot forever]

//Public debt, including guaranteed debt, reached 87.9 percent of GDP at end-December 2020, up from 86.7 percent of GDP at end-December 2019.//

Overview

Get the latest World Bank data, research and development indicators for Pakistan. Access economy facts, statistics, project information, development research from World Bank experts and breaking news.

www.worldbank.org

Au contraire, our debt to GDP as a percentage of GDP is increasing.

I think it is 83.5% as of June 2021.

Our primary account ( expenditure) is in surplus as of July this FY by a tune of 71.7b rupees, so it's basically interest payments racking up as new loans are taken to pay back previous debt (classic debt trap causing fiscal deficit) and rupee devaluation ( so it should be higher now as compared to June this year). The actual expenditure debt accumulation is less than what plmn gathered by a margin and in terms of fiscal discipline.

Debt to GDP ratio should be quoted at the end of each FY as GDP figure is updated.

 

[Pak Nationalist]

I think it is 83.5% as of June 2021.

Our primary account ( expenditure) is in surplus as of July this FY by a tune of 71.7b rupees, so it's basically interest payments racking up as new loans are taken to pay back previous debt (classic debt trap causing fiscal deficit) and rupee devaluation ( so it should be higher now as compared to June this year). The actual expenditure debt accumulation is less than what plmn gathered by a margin and in terms of fiscal discipline.

Debt to GDP ratio should be quoted at the end of each FY as GDP figure is updated.

Let's see. The current IMF program wanted short-term loan stocks to be replaced with longer-term ones to improve debt sustainability and relieve the burden on budgetary spending under the head of debt servicing. BTW, any source of the figure you shared? Wasn't primary account being in surplus a good thing?

 

[Big_bud]

We need to put taxes on imported useless shit! Pakistan can do without gazillions of imported goods! We even have 3 dozen kind of imported dog & cat foods when our balance of payment and debts are going haywire! Why? Just why?

 

[VCheng]

We need to put taxes on imported useless shit! Pakistan can do without gazillions of imported goods! We even have 3 dozen kind of imported dog & cat foods when our balance of payment and debts are going haywire! Why? Just why?

Why? Because remittances are spent by those receiving them to buy what they want.

 

[Maula Jatt]

Why? Because remittances are spent by those receiving them to buy what they want.

You can spend that money anywhere no one is stopping them

But GOP can put high taxes for it

 

[VCheng]

You can spend that money anywhere no one is stopping them

But GOP can put high taxes for it

And they do, up to point. The higher the taxes, the bigger the incentive for smuggling.

 

[Turingsage]

I am curious why nearly ever one mentions TEA and CHEESE and now DOG FOOD

Pakistan imports ~$45 m of TEA.
You could with considerable effort cut it by half saving $20 million

You cannot possibly be eating imported CHEESE of more $3 million
Making cheese is easy and you have one of the largest dairy industry

DOG FOOD may constitute $1 million as dogs probably eat a lot of scraps and lots of waste from abattoir's.

So you are looking at saving maybe $25 million out of a yearly deficit of $30.8 BILLION

That represents 0.0008% of your deficit

If you double and treble these quantities than they would barely make 0.01%