Daily Times

Sir: During the ten months period of the current fiscal year (2016-17), the country’s current account deficit has risen to an alarming amount of US$7.2 billion, which is 200 percent higher than the same period of last financial year (2015-16). The continuous surge in country’s imports month after month is resulting in an unprecedented trade account deficit.

I am surprised that the Mr Khurram Dastagir, Minister for Commerce and Trade has not spoken a word so far, as to what is the actual reason for unprecedented trade deficit and what is the solution to this serious problem.

Even the Finance Minister Ishaq Dar, who is responsible for maintaining a healthy balance sheet of the country has not spoken a word so far on the deteriorating current account deficits which might take us back once again to the doors of IMF. Some media reports suggest that huge machinery import is causing the trade account deficit, which is resulting in current account deficit and that once these machinery being imported is installed and gears into production, country’s exports will increase, which will eventually bring down the trade account balance to a satisfactory level. We have been reading this unconvincing argument forlong.

This situation has been going on for a very long time. I think it is high time that country’s economic managers should take the matter of alarmingly high trade and current account deficits very seriously and come out with a detailed analysis of what actually is causing the trade deficit.

EJAZ AHMAD MAGOON

Lahore