Tuesday, 11 July 2017

Trade Deficit Widens By 37pc To $32.5bn

No comments :

The deficit in Pakistan's goods trade soared 37 percent to a record high of $ 32.58 billion in 2016-17 due to reduced exports and increased imports.

When PML-N was launched in 2013, the US's annual trade deficit was $ 20.44 billion. It has been increasing ever since.

According to data released by Pakistan's National Statistical Office (PBO) on Tuesday, the trade deficit on a monthly basis was $ 2.66 billion in June, down 6 percent from a year earlier.

A Commerce Department official pointed out that the increase in the trade deficit was the only reason. Despite the incentive package announced by the prime minister, exports have declined to facilitate overseas sales of Pakistani goods.

As a result, the expected trade deficit, which is higher than anticipated, poses a threat to the national payment balance. According to PBS data, the total import bill for the period 2016-17 was $ 53 billion, an increase of 18.7%. In June alone, it increased to $ 4.56bn on the annual basis, $ 2.16pc. The income statement was $ 44.95 billion in 2012-13.

Exports fell 1.63 percent from the previous year to $ 20.45 billion in 2016-17. 16.16pc in June, 5pc in April and 3pc in March. Excluding these three months, exports posted negative growth during the rest of the fiscal year.

The government claims to supply 24-hour power supplies from November 2014, but exports are declining. Likewise, the government is providing an export-oriented industry of Rs 3 (Rs3) per unit of electric utility since 2016.

Commerce Secretary Khurram Dastgir told Dawn that exports showed impressive growth in June but did not mention the increasing import bill.

Under the three - year strategic trade policy released last year, the government set a target of $ 35 billion in annual exports in 2018. To facilitate exports, the Prime Minister announced a 180 billion Rupee package for textiles, clothing, sports, surgical, leather and carpet. The impact of the package on national exports has not been determined.

The Department has recently decided to change the framework of trade policy. I wanted to do it in 11 months, but it seems impossible.

In accordance with the Strategic Trade Policy 2015-18, the Department imposes tariffs on local taxes, improving product design, promoting innovation, promoting brand and certification, upgrading technology for new machines and technologies, providing cash support for plants and machinery for processing agricultural products .

Exporters have not yet submitted subsidy claims due to deficiencies in this plan.

No comments :

Post a comment