Maintaining the foreign exchange reserves during the current fiscal year will be a gigantic task for the government, as the country’s trade deficit has ballooned to a record level of $ 21.2 billion during the fiscal year (FY) 2011-12. According to the data released by the Pakistan Bureau of Statistics (PBS) on Tuesday the exports during July-June FY 2011-12 remained $ 23.6 billion declining by 4.7 percent as compared to $ 24.8 billion collected during the corresponding period of FY 2010-11. The imports increased massively by 11.1 percent reaching $ 44.9 billion during July-June FY 2011-12 as compared to $ 40.4 percent during the same period of FY 2010-11. The trade deficit increased by a massive 36.3 percent to $ 21.2 billion during FY 2011-12 as compared to the corresponding period deficit of $ 15.6 billion in FY 2010-11. The government is already worried on the fast pace depletion of the foreign exchange reserves, which have declined by $ 2 billion during the last fiscal year. This fiscal year Pakistan will be making a return of $ 3.5 billion to the International Monetary Fund (IMF). And the pressure is already on the Rupee which has decline massively against the dollar resulting in inflationary pressures. During the last fiscal year, trade deficit increased massively mainly due to the petroleum import bill, as the domestic demand increased due to declining gas supply and hike in international oil prices. Secondly the exports dipped by $ 1.3 billion during the last fiscal year mainly because of the economic crisis in European and American markets, where most of Pakistani textile products are exported. Exporters blame the inefficiency of the government in controlling the lingering energy crisis in the country which has decreased industrial activity resulting decline of exports and its failure on the diplomatic front to timely get duty free access to EU markets announced by the 27 member block in September 2010.
The Pakistanis working overseas sent back home remittances worth over $ 13 billion for the first time in country’s history during the just-concluded fiscal year 2011‐12. The remitted amount stands at a record $13.186 billion during July-June FY12, showing an “impressive” growth of 17.73 percent compared with $ 11.200 billion received during the preceding fiscal year, 2010-11, the central bank said on Tuesday. Except for the months of September ($890.42 million) and November ($924.92 million), Pakistani workers remitted more than $1 billion during 10 months of FY12. Remittances received from all countries of the world showed substantial growth during the year in review and almost all of this growth was through banking channels. The inflow of remittances in said year from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $3,687.00, $2,848.86 million, $2,334.47 million, $1,521.10 million, $1,495.00 million and $364.79 million respectively as compared with $2,670.07 million, $2,597.74 million, $2,068.67 million, $1,199.67 million, $1,306.18 million and $354.76 million received in July‐June 2011. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries amounted to $935.36 million against $1,003.81 million received in the preceding year. The monthly average remittances for July‐June 2012 period comes out to $1,098.88 million as compared with $933.41 million during the preceding year, registering an increase of 17.73 percent. The overseas Pakistanis also sent home $1,117.48 million in June 2012 when compared with $1,104.56 million received in the same month of FY11. During the month remittances from Saudi Arabia, UAE, USA, UK, GCC countries and EU countries amounted to $333.68 million, $219.14 million, $206.60 million, $128.12 million, $126.72 million and $29.24 million respectively compared to $291.55 million, $270.04 million, $204.64 million, $121.35 million, $106.20 million and $33.83 million the country received in June 2011.
Either side of history
