- Trade deficit surged to $11.775billion– 19.90pc
The country’s exports slightly improved in the month of November 2016 to $1.762 billion up by 0.34 percent compared to October 2016, while 6.21 percent compared to November 2015.
The declining trend in the goods’ export continued in July-November 2016-17 and total exports of the country stood at $8.189 billion down by 3.94 percent compared to $8.542 billion in the same period last year.
Meanwhile, the goods import in July-November 2016-17 further enhanced by 8.83 per cent to $19.964 billion compared to $18.345 billion in the same period last year. This five months import of the country is almost 59 percent higher than the total exports in this period, the data revealed by Pakistan Bureau of Statistics (PBS) here on Tuesday.
The trade deficit of the country increased to $11.775 billion in July-November 2016-17 up by 19.90 percent compared to $9.821 billion in the same period last year.
According to the analysts, the exports of the country have improved in last two months (October and November 2016), but on the other hand, the imports of the country have also gone up which is not a good sign for the country’s economy.
Meanwhile on Month-on-Month (MoM), the exports jumped by 0.34 per cent compared to $1.756 billion in October 2016.
In November, 2016, period, the imports of the country went up by 6.03 per cent to $4.255 billion compared to $4.013 billion in October 2016, while up by 10.81 per cent compared to $3.840 billion in November 2015.
S.M Muneer, chairman Trade Development Authority of Pakistan (TDAP) on phone said that all economic indicators of the country have been improved in last five months while we are looking 2017 ‘the best year of the country’.
“In international market, the prices of leather and textile products have gone up by 10 per cent during last three months and such price impact supported local goods in markets abroad,” he claimed.
He further claimed that it would be difficult to say now whether our export would touch previous marks of $20.802 billion or further decline in the remaining months.
Most of the textile exporters bought new modern machineries in last five months, he informed, which is the main burden on our trade deficit; export will increase in future, he claimed.
Pakistan’s economic growth in fiscal year 2015-16 reached 4.7 percent—the highest rate in eight years and a significant increase from the previous year’s 4 percent, said a World Bank Report.
In the last budget 2016-17, the federal government has also set its $35 billion export target by the end of 2018.
The finance ministry gave incentives of rebate and Zero-rated Sales Tax to top five important textile sectors to enhance their exports in coming years. These five sectors export almost half of the total goods export to European Union (EU), America and other countries.
Last year 2015-16, the country’s goods export declined by 12.11 percent to $20.802 billion from $23.667 billion in 2014-15 while total imports declined by 2.32 percent to $44.765 billion from $45.826 billion.
Owing to the declining exports and remittances, the exchange rates of dollar is under pressure in the interbank market and open currency market for last three months and had touched Rs 104.85 higher by 35 paisas.