Business Recorder reports:
Increasing crude oil prices as well as luxury items in the import bill and dwindling exports have pushed the trade deficit to an all time high during the period under review. Official statistics released by the FBS on Saturday showed $32.061 billion imports, which were twice the total exports, $15.255 billion, during the period under review with 50.78 percent trade deficit. The deficit is over $5 billion compared to the same period last year.
A trade gap of $2.291 billion was witnessed in April with $4.099 billion imports against just $1.808 billion exports, which were marginally higher over last month's exports of $1.786 billion.
On a year to year basis, there is a small rise in export from July to April. The July-April export last year stood at $13.847 billlion. This year it has risen 10.17% to $15.255 billion. Because of the high price of oil, Pakistani goods are losing their competitive pricing edge. If such trend continues, it would create serious pressure on the country’s foreign exchange reserve resulting into economic crisis.
To come out of this problem, both the government and business organizations of the country have to work together. Government should target export goods that have good demands in the international market. At the same time, the government should start working on alternative power sources to get rid of the high demand of crude oil.
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High price in Pakistan is a big problem. Because of high price, Pakistani foods are losing their competitive price in the international market. Pakistani people are also facing food crisis problems. I hope government of Pakistan country should take any necessary steps as people of lower class born can manage food.
Posted by: kamrul hasan | May 13, 2008 7:35 AM | Permalink to Comment