Pakistan’s trade experiences increase after PML-N came to power in 2013. Though there are many development projects in the progress still the nation will face the rise in Pakistan’s trade deficit.
The trade is ballooned proximately by 42% year on year that is an all-time high of $30 billion for the current fiscal year’s first eleven months.
The fiscal year fall back on exports and noticed a sharp increase in the import bill.
Whereas, the annual trade deficit was $20.435bn before the increase. Pakistan experienced the rise by accelerated rise in imports and fall in exports.
According to the recent data released by the Pakistan Bureau of Statistics on Monday, the deficit trade managed to stand by $3.465bn in May, that a rise of about nearly 61pc.
The results are highers if compared to the same month of last year.
Reasons for the Rise of Trade:
- The rise in import bill of capital goods, petroleum products, and food products.
- The slight fall in exports although the prime minister is supporting a package to boost exports.
Whereas trade deficit is said to experience a threat for external balancing of payments.
The overall import in July-May rose by 20.6pc year-on-year to $48.54bn. Whereas in only May it rose to 28pc to $5.09bn.
It is expected that the import will increase over $53bn this fiscal year from $44.950bn in the year 2012-13.
On another hand, it shows that exports grew 5pc in April and 3pc in March.
Pakistan’s Export is in a decline although prime minister claims to supply round the clock power since November 2014.
The government also intended to provide Rs3 per unit concession in electricity tariff since 2016 for export-oriented industries.
The exports proceed to fall to $18.54bn from $19.14bn through May in 11 months from year a ago.
A three Strategic Trade Policy unveiled last year, Pakistani government set an annual traget for exports of $35bn by 2018.
For boosting the exports prime minister already announced subsidy package of Rs180bn.
For textile, clothing, sports, surgical, leather and carpet sectors. But the impact is still in progress to view great results.
Other than the government also fired the commerce secretary, Azmat Ali Ranjha as he failed to implement the trade policy fully.
Younis Dagha was signed later who was already strutted out for failing the Ministry of Water and Power to manage power load-shedding issues.