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Trade deficit reached all-time high in year 2017: Pakistan Bureau of Statistics
Global Village Space |
News Analysis |
With dwindling foreign reserves, the country’s economy is grossly engulfed by the imbalances in the current account. Higher imports and record-low exports of all the time, the economy is hence given another shook in the 2016-2017 fiscal year.
Finance Minister Ishaq Dar’s policy to keep stable the Rupee against the Dollar made the imports relatively cheap and exports uncompetitive in the preceding fiscal year.
Read more: Resign for your own good sir…
It is the fourth consecutive failure of the residing government to achieve its own targets of increasing exports as set by them in every year’s budget and fiscal plan.
The fresh statistics released by Pakistan Bureau of Statistics have shown that Government has persistently been missing out their target of expanding exports. It is the fourth consecutive failure of the residing government to achieve its own targets of increasing exports as set by them in every year’s budget and fiscal plan.
The statistics have also shown a continuous trend of comprising exports in favor of imports. The trends have shown that the trade deficit in the preceding year has been widened by 37%, which is an all-time high. With noticeably higher imports the economy has borne the loss of $32.58 billion in the last year.
The Statistics
Import bill increased to $53 billion, which is recorded highest ever in the history of Pakistan. Additionally, the figures are $8.34 billion or 18.7% higher, from the last fiscal year.
The country’s annual trade deficits, in 2013 were $20.44bn, a time when the newly elected government of PMLN took charge. But, since then there has been an annual increase in trade deficits. In the last year, the import bill increased to $53 billion, which is recorded highest ever in the history of Pakistan. Additionally, the figures are $8.34 billion or 18.7% higher, from the last fiscal year.
However, the trade deficit recorded in June showed a shrunk of 6% when compared with the figures year ago. Expect for the last three months of the preceding fiscal year, the rest showed a decline in exports with aggregate figures of trade deficit standing at Rs 10.6 billion recorded in the fist 11 months of the year.
Read more: Pak-US relations: Echoing old mantra?
If described in the numerical language, on monthly basis the month of June recorded an increase of 17.5 % increase in exports, additionally raising the export bill to $1.9million higher than in the month of May of the same year. The improvements in June brought a decrease of $2.62 million in the trade deficit.
While the imports, rose by 2.16 % to $4.45bn in June, and on monthly basis, the imports contracted by 11% to $2.6 billion.
The implication of figures
The above statistics indicate that the month of June, showed a slight improvement in the trade account, but the figures are still not near to bring trade surplus.
The major reasons for this trade deficit is the heavy imports of capital goods, petroleum and food products. The immediate effect is felt in the thinning of the foreign reserves, and with already falling exports, the tight income earned from these exports are heavily directed towards paying off foreign loans.
Read more: Behold the JIT report! PML-N facade crumbling?
Keeping in view the annual figures of the sky rocked import bill of $53 billion, it is unfathomable the inability of the government to fruitfully utilize the redemptions given to the Pakistani exports in the European Union regions.
Read full article:
Trade deficit reached all-time high in year 2017: Pakistan Bureau of Statistics
Global Village Space |
News Analysis |
With dwindling foreign reserves, the country’s economy is grossly engulfed by the imbalances in the current account. Higher imports and record-low exports of all the time, the economy is hence given another shook in the 2016-2017 fiscal year.
Finance Minister Ishaq Dar’s policy to keep stable the Rupee against the Dollar made the imports relatively cheap and exports uncompetitive in the preceding fiscal year.
Read more: Resign for your own good sir…
It is the fourth consecutive failure of the residing government to achieve its own targets of increasing exports as set by them in every year’s budget and fiscal plan.
The fresh statistics released by Pakistan Bureau of Statistics have shown that Government has persistently been missing out their target of expanding exports. It is the fourth consecutive failure of the residing government to achieve its own targets of increasing exports as set by them in every year’s budget and fiscal plan.
The statistics have also shown a continuous trend of comprising exports in favor of imports. The trends have shown that the trade deficit in the preceding year has been widened by 37%, which is an all-time high. With noticeably higher imports the economy has borne the loss of $32.58 billion in the last year.
The Statistics
Import bill increased to $53 billion, which is recorded highest ever in the history of Pakistan. Additionally, the figures are $8.34 billion or 18.7% higher, from the last fiscal year.
The country’s annual trade deficits, in 2013 were $20.44bn, a time when the newly elected government of PMLN took charge. But, since then there has been an annual increase in trade deficits. In the last year, the import bill increased to $53 billion, which is recorded highest ever in the history of Pakistan. Additionally, the figures are $8.34 billion or 18.7% higher, from the last fiscal year.
However, the trade deficit recorded in June showed a shrunk of 6% when compared with the figures year ago. Expect for the last three months of the preceding fiscal year, the rest showed a decline in exports with aggregate figures of trade deficit standing at Rs 10.6 billion recorded in the fist 11 months of the year.
Read more: Pak-US relations: Echoing old mantra?
If described in the numerical language, on monthly basis the month of June recorded an increase of 17.5 % increase in exports, additionally raising the export bill to $1.9million higher than in the month of May of the same year. The improvements in June brought a decrease of $2.62 million in the trade deficit.
While the imports, rose by 2.16 % to $4.45bn in June, and on monthly basis, the imports contracted by 11% to $2.6 billion.
The implication of figures
The above statistics indicate that the month of June, showed a slight improvement in the trade account, but the figures are still not near to bring trade surplus.
The major reasons for this trade deficit is the heavy imports of capital goods, petroleum and food products. The immediate effect is felt in the thinning of the foreign reserves, and with already falling exports, the tight income earned from these exports are heavily directed towards paying off foreign loans.
Read more: Behold the JIT report! PML-N facade crumbling?
Keeping in view the annual figures of the sky rocked import bill of $53 billion, it is unfathomable the inability of the government to fruitfully utilize the redemptions given to the Pakistani exports in the European Union regions.
Read full article:
Trade deficit reached all-time high in year 2017: Pakistan Bureau of Statistics
