Trade deficit shrinks by $2 Billion in First seven months

[Arsalan]

I agree that the direction is encouraging, but the magnitude of the task will definitely take "deep structural reforms" as PMIK recently agreed with Ms. Lagarde. One hopes that this direction can be maintained.



You are correct that figures could be worse, so one must appreciate even the baby steps in the right direction.



The figures mean that the immense pressure on the BoP situation will remain for the foreseeable future.

Yes. Four Five years at least, if we manage some healthy FDI that would help!

 

[VCheng]

Yes. Four Five years at least, if we manage some healthy FDI that would help!

Even five years would be a fast rectification and almost a miracle, given the magnitude of the shortfall.

A nation that imports more than twice of what it exports will have a huge balance of payments issue. Using remittances may bridge this gap for accounting purposes, but creates its own problem: all the funds flowing to families back home create a huge demand for imported goods, that contributes to the BoP imbalance.

This vicious circle can be broken only by exporting more. The present government is indeed making efforts to do just that but the power sector problems, including the circular debt crisis, will also need a few years to rectify.

Quite the mess, to say the least.

Sir these babies step will not resolve the main issue in Hand.
1> Hydral Projects - Electricity exp, Imported Fuel/Coal/Diesel/LNG/Gen, Agri man sector of economy & Water level going down
2> Govt facilitating investment instead of giving jobs - Govt. Dept Over employed - Salary many time greater then pvt. sector - Many Incompetent employee - Ancient working environment (Multi-window operation /lot of paper work)- output below average - Zero accountability - Corruption

You highlight two important problems that contribute to the overall situation.

 

[Menace2Society]

PPP and PMLN really f**ked the economy. This is what happens when you let uneducated crooks run the country.

 

[SSGcommandoPAK]

Deficit shrinks by 2bn USD
Exports increase by 4%
Imports decrease by 5%
Remittance increase by 12%
Great start but a long way to go ...

 

[AUz]

@BHarwana whats your insight about the PTI’s economic policies??

 

[ziaulislam]

Deficit shrinks by 2bn USD
Exports increase by 4%
Imports decrease by 5%
Remittance increase by 12%
Great start but a long way to go ...

This is 7 month data..it has no importance..the data for next financial year will be important

Policies of export package and ease of doing business etc are all going to come effect in july next yr with effects somewhere in next yr

Taxation is another issue

What govt would want is to get fiscal control and take the federal govt out of primary deficit

For that to happen federal govt needs atleast 1.5 trillion in revenue measures

 

[Syed1.]

Just bring exports to $50 billion by the end of this term with focusing more on engineering products and IT exports.


This will set the platform for rapid growth in the next 5 year term (provided the looters do not return). We might be able to hit $150 billion in exports by 2028.

 

[BHarwana]

@BHarwana whats your insight about the PTI’s economic policies??

It is a slow start towards the progress of our economy and I am satisfied that we set to move in the right direction of becoming a production based economy. PTI has provided us Pakistan with all the right tools the only thing left now is for us as a nation to mentally move in the direction and make good investments in the right direction. The first few people who will realize the govt policies will be the fist to reap benefits of PTI's pro export policies and make a fortune for them selves.

 

[Menace2Society]

One day probably in my 70s now I'm going to land in a Pakistan exporting $600 billion a year, clean clean streets, hardly any poor, young men and women smartly dressed going or coming back from work. Get a taxi from Lahore airport to the finance district, check in, change of shirt and head over to a bar for a drink. No eyeballing men, no bed sheet women, just clean streets and clean people. That is my f**king dream.

 

[AUz]

One day probably in my 70s now I'm going to land in a Pakistan exporting $600 billion a year, clean clean streets, hardly any poor, young men and women smartly dressed going or coming back from work. Get a taxi from Lahore airport to the finance district, check in, change of shirt and head over to a bar for a drink. No eyeballing men, no bed sheet women, just clean streets and clean people. That is my f**king dream.

You have some mental and inferiority complex issues but other than that, yeah let’s hope we become a $600 billion exporting economy Inshallah.