Pakistani Exports surged by 1.7 percent, trade deficit shrunk in six months
- Pakistan’s exports surged by 1.7%
- Depreciation of 5.6% in the trade deficit
- Financial support from friendly countries helped overcome deficits
- Trade deficit shrunk in the first half of the current fiscal year
- A noticeable decrease in Pakistani imports
Pakistani exports have surged by 1.7% in the first half of the current fiscal year and stood at $11.186B as compared to $11B in the same period last year.
However, the exports surged by 4% to $2.06 billion in December 2018 as compared to November 2018.
After depreciation of 5.6% in the trade deficit, the total deficit stood at $16.940 billion in July-Dec 2018-19, as compared to $17.939 billion in the same period last year.
PM Khan making efforts to overcome account deficit:
Prime Minister Imran Khan has been formulating various strategies to overcome the rising import and current account deficit, which had touched $18.9 billion in 2017-18.
Assistance from Saudi Arabia:
The central bank had received $2 billion from Saudi Arabia in the head of financial assistance. Also, $1 billion is expected to be received this month.
The Saudi government had promised to give $6 billion to Pakistan, including $3 billion oil on deferred payments for the next three years.
China and UAE to support Pakistan:
The Chinese government and the United Arab Emirates (UAE) had also promised financial support to Pakistan.
The ruling government is also negotiating with the International Monetary Fund (IMF) to get $6-$7 billion.
The State Bank reserves stood at $7.048 billion, less than the import bill of two-month. Total reserves of the country stood at $13.597 billion.
Imports of Pakistan gone down:
Imports of Pakistan have gone down by 2.8% to $28.126 billion in July-Dec 2018-19 as compared to $28.941 billion in the same period last year.
On yearly basis, it decreased by 8% to $4.493 billion in December 2018, as compared to $4.910 billion in the same period last year. On a monthly basis, it increased by 3%.
In 2017-18, the import bills had touched $55.8 billion (more than double of the total export inflows of $24.772 billion).
The ruling government is taking several steps to enhance the exports. The government has also decided not to increase gas prices for industries.
Similarly, the government has withdrawn Regulatory Duty (RD) on the raw material to reduce the cost of doing business in the country.
Pakistan’s trade deficit has shrunk to $14.5 billion in the first six months of current fiscal year (July to November).
The deficit has decreased due to a reduction in imports and an increase in the exports for six months.
It is a positive sign for the economy that country’s trade deficit is declining, which was massively widened during the previous fiscal year.
Source: Pakistan Today