The International Monetary Fund (IMF) has forecast that Pakistan''s trade gap could swell further, and hinted a 5 percent increase in it to $8.8 billion-highest level so far--at the end of the current fiscal year, it is learnt.
According to IMF statistics, despite all efforts of the government, the trade deficit could not be controlled. As a result, it might increase by $337 million and touch the highest level so far of $8.819 million by the end of the current fiscal year 2006-07. The country''s deficit was 8.442 million in 2005-06.
IMF said that its projections on trade deficit and exports were based on a staff scenario of monetary and fiscal tightening. During the current fiscal year Pakistan''s exports would reach $18.819 billion, while imports could amount to $27.467 billion, the report said.
Last year''s results also showed that Pakistan had faced highest deficit of the history, which was $8.442 billion. During the current fiscal year (2006-07), Pakistan might achieve its export target of $18.648 billion, increased by around $2.142 billion, or 13 percent, against $16.506 billion of last, estimated statistics said.
Imports might touch the $27.467 billion mark this year against last year''s $24.948 billion, depicting an increase of $2.519 billion, or 10 percent. Leading economic analysts have also indicated that during the current fiscal year Pakistan''s trade deficit would be higher than last year. They said that the government has failed to control increase in imports, the chief contributing factor to the growing trade deficit.
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