The Businessmen Panel of the Federation of Pakistan Chambers of Commerce and Industry Chairman Mian Anjum Nisar has welcomed the significant drop of trade deficit by $4.8 billion to $9.7 billion in first five months of this fiscal year against $14.5 billion deficit of the previous year's July-Nov period
Lahore (Pakistan Point News / Online - 13th December, 2019) The Businessmen Panel of the Federation of Pakistan Chambers of Commerce and Industry Chairman Mian Anjum Nisar has welcomed the significant drop of trade deficit by $4.8 billion to $9.7 billion in first five months of this fiscal year against $14.5 billion deficit of the previous year's July-Nov period.He, however, pointed out that this 33 percent decline in trade deficit is contributed by more than 90 percent from import side not from exports side, as growth in exports remained tepid.
He said that trade statistics for July-Nov indicate that annual trade deficit may decrease by $12 billion to $19 billion (from $31 billion) in the current fiscal year. This coupled with workers' remittances will positively address out current account deficit woes, he said. He said that for the first time in last 15 years, imports are decreasing but low exports volumes are still the issue for the country's economic growth.Quoting the figures of Pakistan Bureau of Statistics he said that exports have fallen in November over the preceding month while average rise in exports in first five months is less than 5 percent, indicating that the export target will again be missed this year too.
He said the Currency devaluation, aimed at increasing exports, stoked inflation and increased the cost of doing business. Lack of diversification of export destinations and products and high cost of doing business are among the key factors behind low exports.Mian Anjum Nisar pointed out monthly exports stood at $1.9 billion on average from July to November, which do not correspond with the hype created by the government about improvement in exports.
