KARACHI: At the time when the Pakistan Muslin League (PML-N) led government is claiming record economic progress in Pakistan, the yearly decline in exports entered into its 11th straight quarter in September -December 2016 period.
Trade deficit in December widened by 35.68 percent to Rs 2.86 billion while balance of trade in Pakistan averaged Rs 2.9 billion from 1957 until 2016, reaching an all time high of Rs 6457 million in June 2003 and a record low of Rs 2.9 billion in June 2016.
The Pakistan trade deficit in first half of fiscal year 2016-17 (FY17) rose to the second highest level in 2016 as imports increased, while Pakistani exports fell for eleventh quarter consecutively.
During July-December 2016, the trade deficit jumped 22.2 percent to $14.59 billion, the largest imbalance since August 2016, the Pakistan Bureau of Statistics (PBS) reported Monday.
“With uncertain recovery in demand from developed economies and China (as its economy undergoes a structural transformation), Pakistan’s export performance is not likely to improve unless our exporters improve their competitiveness, adopt innovative production methods, and diversify their products and markets’, said the State Bank of Pakistan (SBP) in its quarterly report for first quarter FY17.
The SBP further added that the task of boosting exports will likely be made somewhat more challenging by rising popularity of anti-trade sentiments, particularly in advanced economies that are major export destinations for Pakistan.
On a positive note, there has been increased euphoria in expectation of another incentive package by the government, which is likely to be announced in the near future. News wire suggests that Rs 75 billion package for six export oriented sectors is under discussion between various ministries.
According to the data of PBS, the country’s exports remained on lower trajectory, showing 3.82 percent yearly decline to $9.9 billion in first half of FY17, as compared to $10.3 billion in corresponding period of FY16. Similarly, import bill surged by 10.11 percent, as the total import receipts of the country settled at $24.4 billion in said period while it was $22.1 billion in same period of previous fiscal. In the month of December 2016, trade deficit surged by enormous 35.68 percent to $2.76 billion as compared to the trade deficit of $2.03 billion in December 2015. The exports from the country to the world witnessed 3.09 percent decline in the month of December 2016 to $1.72 billion as against $1.78 billion of December 2015. Imports in to the country increased by 17.58 percent in said month to $4.48 billion against $3.81 billion in corresponding month of preceding year.