In Febraury ,the export showing an increase of 13.82 pc.Trade deficit shrinks 26.5pc.

[Shahzaz ud din]

In February, the export showing an increase of 13.82pc.Trade deficit shrinks 26.5pc
The Newspaper's Staff ReporterUpdated March 05, 2020
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Pakistan’s trade deficit fell by 26.5 per cent to $15.77 billion in the first eight months of this fiscal year from $21.46bn over the corresponding period of last year, Pakistan Bureau of Statistics said on Tuesday. — Reuters/File
ISLAMABAD: Pakistan’s trade deficit fell by 26.5 per cent to $15.77 billion in the first eight months of this fiscal year from $21.46bn over the corresponding period of last year, Pakistan Bureau of Statistics said on Tuesday.

The decline came mainly on the back of double-digit decline in imports following government’s corrective measures to reduce pressures on foreign exchange reserves and slump in overall demand.

On a monthly basis, the deficit fell by 14.6pc to $1.9bn in February from $2.26bn during the same month last year.

The commerce ministry estimates the annual trade deficit to decrease by around $12bn to $19bn in the ongoing fiscal year from $31bn during the last fiscal year.

The data showed imports in the first eight months of current fiscal year clocked in at $31.42bn, down by 14.06pc from $36.56bn during the same period last year. The decline in value of imported goods in February was 1.71pc to $4.07bn against $4.14bn during the same month last year.

In February, the export proceeds edged up to $2.14bn from $1.88bn over the corresponding months last year, showing an increase of 13.82pc.

Between July 2019 and February, the export proceeds’ grew up by 3.65pc as it stood at $15.64bn against $15.09bn over the corresponding months last year.

On the other hand, the export of services surged by 5.18pc year-on-year to $3.23bn in first seven months of the current fiscal year.

On monthly basis, export of services proceeds dropped by 0.21pc in February to $496.12 million on a year-on-year basis.

In 2018-19, export proceeds of services were recorded at $5.37bn, from $5.28bn over the preceding year, reflecting a paltry growth. Meanwhile, in FY18, services exports had declined 7pc year-on-year to $5.4bn.

Meanwhile, the import of services fell to $5.21bn in July-January FY20 from $5.45bn in same months last year, reflecting a decline of 4.46pc. In January, imports of services fell by 2.99pc to $678.2m on a year-on-year basis.

Published in Dawn, March 5th, 2020

 

[Baz]

need to reduce it to 0. well done so far

 

[Mrc]

If they can sustain this for 6 to 12 months at this rate than next year u will start hearing wonderful things

 

[Kambojaric]

Tough measures but the previous economic model was simply unsustainable. Borrowing and hoping the economy would kick off and balance things eventually was not working.

 

[Sugarcane]

What's the status of current account?

 

[Dr. Strangelove]

What's the status of current account?

CAD was $2.153 billion in the first six months of the current fiscal year of 2020 it was over 8 billion in the same period of Year 2019. The data for the 3rd quarter has not been released. It would be somewhere between 4-6 billion will depend upon the Remittance we receive this year.

 

[Sugarcane]

CAD was $2.153 billion in the first six months of the current fiscal year of 2020 it was over 8 billion in the same period of Year 2019. The data for the 3rd quarter has not been released. It would be somewhere between 4-6 billion will depend upon the Remittance we receive this year.

So, it will take at-least 3 more tough year to achieve balance.

 

[Mrc]

So, it will take at-least 3 more tough year to achieve balance.

How ? Can u tell us how u reached 3 years figure.. The calculation I mean

 

[Sugarcane]

How ? Can u tell us how u reached 3 years figure.. The calculation I mean

Just a random thought no calculation involved. If you have calculations then please do share.

 

[Dr. Strangelove]

So, it will take at-least 3 more tough year to achieve balance.

If the current trend with Exports and Imports continues 1 More and CAD will be history.

 

[bafxet]

So, it will take at-least 3 more tough year to achieve balance.

Pakistan's exports aren't been doing well. It won't be fair to blame NS or Zardari for this single matter. Truth is that successive governments have failed in genuinely trying to boost exports. CAD is a problem and this problem takes us to IMF.

Another bottleneck was the Afghan war. Since it is over now and Pakistan's relationship with west have gotten better therefore it should put us back to the map in a big way.

For Textile and leather, if EU gives Pakistan a GSP+ it would be great and we can see a quantum jump.

For Rice it sells according to the international market prices so there is no much that can be done in terms of improving unit price.

But something noticeable is that we haven't been able to diversify our export base. It is still the same what it use to be 30/40 years ago. Part of it would improve by foreign investment. Like mobile phone, computers etc etc.

 

[CrazyZ]

The PKR must kept weak for as long as possible....or else the traditional import led growth mafia will evaporate any forex. Energy independence should continue to be a priority. It helps CAD and makes us less dependant on the Petro dollar.

 

[bafxet]

The PKR must kept weak for as long as possible....or else the traditional import led growth mafia will evaporate any forex. Energy independence should continue to be a priority. It helps CAD and makes us less dependant on the Petro dollar.

Short term it's ok. But in the long run I think that weakening of currency is probably not an ideal thing to do. Indtead the whole industry will have to make itself competitive.

 

[Pakistan Space Agency]

If they can sustain this for 6 to 12 months at this rate than next year u will start hearing wonderful things

Why and how? What Shaikh Chillian logic and formula is the PTI Government going to utilise that it hasn't already?

Let's just look at some very simple figures.

Pakistan's population increases by 4.3 million a year. How do you feed that population?

1. Do you decrease the imports so the 4.3 million new population dies off?
2. Do you increase the exports so the 4.3 million new population starves to death?
3. Do you plant seeds in the fields so all sorts of factories magically mushroom up within the next 12 months?

Also note, exports have decreased for months of December 2019 and January 2020 while imports have increased in the months of December 2019 and January 2020.

 

[Norwegian]

Tough measures but the previous economic model was simply unsustainable. Borrowing and hoping the economy would kick off and balance things eventually was not working.

Yes previous govts were on Alhamdulillah and Inshallah instead of doing sound scientifically sound economic work.

Short term it's ok. But in the long run I think that weakening of currency is probably not an ideal thing to do. Indtead the whole industry will have to make itself competitive.

Why having a strong currency is such an ideal thing for import led growth economy, Patwari?

Pakistan's population increases by 4.3 million a year. How do you feed that population?

By selling Avenfield flats in London.

1. Do you decrease the imports so the 4.3 million new population dies off?

No you bring back national thief Nawaz Sharif

2. Do you increase the exports so the 4.3 million new population starves to death?

No you bring back absconders Ishaq Dar, Hassan and Hussain Sharif

3. Do you plant seeds in the fields so all sorts of factories magically mushroom up within the next 12 months?

No you bring back opposition leader Shehbaz Sharif

Also note, exports have decreased for months of December 2019 and January 2020 while imports have increased in the months of December 2019 and January 2020.

Still better than your donkey PMLN govt

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