Saturday , 18 November 2017

Pakistan’s rising trade deficit crosses record $26.55 Billion

Pakistan’s trade deficit rose to historic $26.55 billion during the first ten months (July-April 2017) of the current fiscal year, up by 40.12 percent from $18.95 billion for the same period a year before, according to Pakistan Bureau of Statistics (PBS).

Provisional trade data released by the PBS showed a decline of 2.29 percent in exports during July-April 2017 with exports contracting to $16.918 billion in the first ten months of the current fiscal year as compared to $17.314 billion for the same period of last fiscal year.

However, imports increased to $43.473 billion in July-April 2017 as compared to $36.265 billion for the same period of last fiscal year, showing an increase of 19.88 percent.

Analysts say that increase in trade deficit is not a good omen for the country and may create balance of payment problems with looming repayment of foreign debt.

On the other hand, the government’s earnings have been on decline and thus may not support the balance of payment position.

The analysts say that increase in export and Foreign Direct Investment (FDI) is critical to support the balance of payment and meet the financial requirements of the country.

Trade deficit increased to $3.193 billion in April 2017, up by 51.69 percent from $2.105 billion for the same month a year ago. An increase of 5.19 percent was noted in the exports in April 2017 while increase in imports was substantially high, 30.80 percent.

Trade deficit in April 2017 was recorded at $3.193 billion, which was 0.47 percent less from $3.208 billion for the previous month of March 2017.

An increase of 0.22 percent in exports and decrease of the same percent in imports was recorded by the PBS in April 2017 over the previous month. Exports increased to $1.805 billion in April 2017 over $1.801 billion in March 2017 while imports have decreased to $4.998 billion as compared to $5.009 billion.

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