South Asian Business news and information

The News reports:

Ballooning imports and deflated exports once again returned. The deficit, if unchecked, could further jack up the current account deficit, which is a potential threat to the economy. The economy during the first eight months of the current fiscal pulled in imports worth $24.14 billion while its exports stood only at $11.71 billion. During the same period of last fiscal, imports stood at $19.79 billion and exports at $10.85 billion.

This depicts 21.95 per cent growth in imports while only 7.86 per cent rise in exports. It indicates that the country is marching toward another huge trade deficit in the current fiscal year. More interestingly, during February 2008, exports were up 5.31 per cent to $1.55 billion while imports rose 3.67 per cent to $3.66 billion over January 2008. During February 2008, imports were up 42.25 per cent and exports 22.25 per cent over February 2007.

In its trade policy of 2007-2008, Pakistan government set its export target at $19 billion and import at $29.6 billion. Unfortunately, it failed to achieve its export target. So far, 61.63% of the export target has been achieved compared to 81.55% of import target. At this rate, at the end of the current fiscal year, the trade deficit would become more than $16 billion.   

Pakistan is now going through a tough time. The new government has not been very successful in bringing political stability. This has resulted in a downslide in the economy of the country. The government should take necessary steps to stop this deficit from increasing.

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The News