The All Pakistan Business Forum' (APBF) has expressed its concerns over the alarming rise in the trade deficit, during the first 7 months of the on-going fiscal year. According to recent economic reports in the media - Pakistan's external sector is facing increased pressure, as its trade deficit has alarmingly widened by 28.7 percent to reach $17.4 billion, during the period July 2016 to January 2017, due to a continuous decline in exports and double-digit growth in imports.
The deficit has already risen by $3.9 billion - 28.7 percent more than the previous year's comparative period, as the exports plunged 3.2 percent to total $11.7 billion during July-January. In comparison, Pakistan's imports increased by 13.7 percent to reach $29.1 billion in the same period. In absolute terms, the import bill was $3.5 billion more than the previous year.
Pakistan Bureau of Statistics has revealed that the country has breached its limits by booking a trade deficit of $17.42-billion in 7 months, which is already equivalent to 85 percent of the country's annual target. Exports during these seven-months were less than half of the yearly target, while imports have already reached two-thirds of the annual projections. The State Bank of Pakistan has already issued a warning about this excessive gap between external payments and receipts - termed as Current-Account Deficit, which is expected to go beyond $4.5-billion.
The President of All Pakistan Business Forum said that, "It is good to see that an excessive amount of machinery is being imported for the rapid development of numerous ventures under the 'China-Pakistan Economic Corridor'. This reflects faster industrial progress in Pakistan. However, Pakistan's financial managers must remain cautious, not to exceed the country's financial capacity and resources. We must maintain a healthy balance between our imports and exports. Otherwise, this deficit will reach the $25 billion mark by the end of this fiscal year, and the government will be forced to rely excessively on foreign borrowings."
During the first half of the fiscal year, Pakistan has already imported $5.7 billion worth of machinery, which is 40.8 percent higher than the previous year. To make things worse, the recent rise in international Petroleum prices has also raised Pakistan's Oil-import bill to $5 billion, during the first half, reflecting an increase of 11.2 percent.-PR