Pakistan Trade Deficit hits roof, swells to USD26 billion

Pakistan trade deficit in ten months of the current year swelled by 40 percent to 26.55 billion dollars as the imports outpaced exports as shipments of machinery and power units raised sharply.

Pakistan Bureau of Statistics released statement for the July 2016 to April 2017, showing that imports registered galloping rise and totaled at 43.47 billion dollars as compared with 36.26 billion dollars of the same period corresponding year. Imports rose 19.88 percent during the period under review.

Trade deficit has been soared by 40 percent mainly on back of higher imports of machinery, power units and other products imported which mostly came under the development of CPEC, draining country’s coffers.

The exports are unmoved and since long has been low ebb. Exports during July 2016 to April 2017 showed a drop of 2.29 percent to 16.918 billion dollars as compared with 17.314 billion dollars of the same period previous year.

Pakistani exporters appeared helpless and could not compete with the regional peers. Earlier they were narrating reason of load shedding and higher interest and now despite 42 years low interest, the exports showed any sign of improvement. Rather exporters were of the opinion that currency has been kept unchanged for the long and need correction to boost exports, because in the region several currencies in last eight to ten months have been depreciated by four to six percent.