KARACHI: The country exports surged by 10.49 per cent in the first five months of the current fiscal year to $ 9.030 billion compared to $ 8.173 billion in the same period last year.
Despite all the efforts of the federal government to reduce the country’s foreign import by levying a tax on 731 items being imported in to Pakistan, the imports of the country increased by 21.12 per cent to $ 24.060 billion in July-Nov 2017-18 compared to $ 19.864 billion in the same period last year, however it decreased by 0.63 per cent compared to October 2017.
The country’s exports slightly enhanced by 10.49 per cent to $ 9.030 billion during July-Nov 2017-18 compared to $ 8.173 billion in the same period last year. However, it increased around by $ 100 million in five months compared to last year. The country exported goods worth $ 1.974 billion up by 4.56 per cent in November 2017, the data of Pakistan Bureau of Statistic (PBS) said here on Monday.
The trade deficit further surged to 28.56 per cent to $ 15.030 billion in the first five-month of the current fiscal year compared to $ 11.691 billion in the same period last year. On year-on-year basis, it increased by 3.85 per cent compared to October 2017.
The analyst said, “This was the major import of government measures taken last month to control the imports of good while we hope to continue to see the declining import in the upcoming months.” The rising imports can further deteriorate the financial condition of the country as foreign reserves are depleting rapidly amid insignificant export growth.” Total foreign reserves of the country had come down below $ 19.5 billion only because of rising import bills, he added. However, the reserves of the country had been improved after receiving dollars of for the issuance of bond in the international market worth $ 2.5 billion.
In previous months, the federal government through the Economic Coordination Committee (ECC) of the cabinet has imposed additional duties in the range of 5-15 per cent on import of non-essential items. These are expected to include used cars, tyres, mobile phones, select consumer items, tiles, electronic goods (other than computers) and garments etc. The detailed lists of 731 items have been issued.
Analysts of the brokerage houses believed that export of goods may improve this year if the federal government releases industrialists’ refunds and export’s rebates etc.
Despite all the effort of the government to enhance exports in 2016-17, the country’s goods exports had declined by 1.63 per cent to $ 20.448 billion in (July-June) 2016-17 from $ 20.787 billion in the same period last year. In last two years, the country exports had slid by 15.75 per cent from $ 23.667 billion in 2014-15.
