Summary Exports dropped 9% to $4.68 bln in July-September 2016.
KARACHI (Dunya News) - The trade deficit in the first three months of the current fiscal year widened substantially to $7 billion as against $5.5 billion in the previous fiscal year.
According to the recent data of Pakistan Bureau of Statistics, trade deficit in July-September widened by almost 29 percent.
During the quarter (July – September 2016) exports of the country have fallen by 9 percent to $4.68 billion as compared with $5.14 billion in the corresponding quarter of the last fiscal year. The imports of country, however, increased by 10.7 percent to $11.74 billion from 10.61 billion.
According to the International Monetary Fund’s (IMF) recent report, Pakistan’s exports fell by 8.6 percent during the fiscal year ended June 30, 2016, reflecting lower international prices of cotton and rice, a weak business climate, and competitiveness losses from an appreciating real exchange rate.
IMF further said the lower growth in advanced countries, such as in the UK and possibly the EU owing to the prospective Brexit, and in emerging market economies (including China and GCC) could weaken exports, remittances and FDI. Continued appreciation of the real effective exchange rate, in the context of an appreciating U.S. dollar vis-a-vis the pound and euro, would further erode export competitiveness and affect remittances.
Tighter global financial conditions could have an adverse impact on capital inflows. By contrast, lower oil prices and a slower pace of increase in international interest rates, owing to the impact of Brexit on advanced economy growth, would be beneficial for Pakistan’s external position and growth.
