ISLAMABAD: Despite the government claims of rising economy the trade deficit of Pakistan depicts some other picture.
Pakistan’s trade deficit in merchandise rose nearly 29 per cent year-on-year to $17.428 billion in the first seven months of the current fiscal year because of falling exports and increase in imports.
The deficit stood at $2.957bn in January, a rise of 75pc compared to $1.688bn a year ago, the Pakistan Bureau of Statistics said on Thursday.
The drop in export proceeds, along with fall in remittances, has contributed to the rising current account deficit this fiscal year.
In July-January, the overall import bill rose 13.7pc year-on-year to $29.113bn. In January alone, it increased 37.1pc to $4.737bn. Machinery imports are on the rise because of increase in infrastructure investment, especially construction of roads.
Export proceeds during the seven-month period fell 3.2pc to $11.685bn. In January, however, export proceeds grew 0.74pc, mainly because of increase in exports of textile and clothing. The marginal increase shows that exports of the garments sector, along with other value-added sectors, to Europe have started picking up under the GSP+ preferential tariff scheme.
Under a three-year strategic trade policy unveiled last year, the government set an annual exports target of $35bn by 2018. However, the policy, announced in April 2016, has yet to be implemented.