Rising trade deficit in Pakistan causes concern
Dec 28, 2021
Islamabad [Pakistan], December 28 : Pakistan's trade deficit has risen significantly causing concern, and in November 2021 the figure exceeded USD 5 billion, 29 per cent higher than that reported in October 2021, reported local media.
Pakistan's trade deficit has registered an alarming increase by more than 117.25 per cent in the first five months of the current fiscal year, said The News International.
Imports in the first five months of this financial year were reported at USD 33 billion, 69.6 USD higher than the value reported in the same time period of FY21, reported The Express Tribune.
The growth was observed across all major product categories. Some of the important categories of interest that have reported higher levels of growth are machinery, particularly textile machinery, transport equipment and petroleum products. Imports of completely built-up units and imports of knocked down units have increased, the publication added.
Pakistan's current-account deficit (the broadest measure of trade), during July-November 2021, grew to more than USD 5.08 billion, accounting for 4.7 per cent of GDP, as imports outstripped exports, said The News International.
Currently, Pakistan is facing shrinking foreign exchange reserves, rising inflation, historic currency devaluation, and escalating current account deficit which are again forcing the country to borrow from external forces.
