February 14, 2019: The policy interventions by the government are bearing fruit and recent trade data shows that key indicators are moving in the right direction.
Talking to APP, Advisor and Spokesperson Ministry of Finance Dr Khaqan Najeeb said the remittances sent by overseas Pakistanis have also witnessed considerable growth of 12.22 percent during the first seven months of fiscal year (FY) 2019 as compared to the corresponding period of last fiscal year.
The remittances during July-January 2019 stood at $12.744 billion against the remittances of $11.383 during July-January 2018, he said and added this is a marked improvement of $1.4 billion increase in remittance.
Dr Khaqan said due to the export supporting measures and government’s strategy to curtail imports by imposing regulatory duties on non-essential imports and putting 100% L/C margin, the trade deficit during the first seven months of the fiscal year has reduced.
Exports increased from $12.941 billion during the first seven months of last fiscal year to $13.231 during the current fiscal year, showing a growth of 2.24 percent, he said.
He said on the other hand, imports decreased by 5.17 percent during the period under review, and declined from $34.265 billion in FY 2018 to $32.495 billion during the current year.
“Based on the figures, the trade deficit has narrowed by 9.66% falling from a deficit of $21.324 billion in FY2018 to $19.264 billion during FY2019”, Dr Khaqan Najeeb said and added that private sector credit flows are also showing a growing trend in the first seven months.
The businesses have borrowed for working capital, fixed capital as well as trade finance to the tune of Rs553 billion in FY 2019 compared to Rs270 billion in FY 2018, which shows the confidence of the business community, he added.