KARACHI– Trade deficit in October increased by 25% from September while the exports have also declined. The volume of exports had been 1 billion, 720 million dollars in October, reported Dunya News.
The export volume of first four months of the year had been 6 billion, 880 million dollars, which was 13% lesser than the last year. On the other hand the volume of imports in October 2015, had been 14 billion 500 million dollars while the trade deficit had been 7 billion, 690 million dollars during this period.
According to the economy experts, the government should solve the issues of export industry in order to improve the exports. Another reason on decline in exports, according to the experts, is the high price of electricity and gas that increases the cost of production and result in decline of export industry.
Read more: Trade deficit shrinks to USD 5.5b after exports drop 14 percent
ISLAMABAD (Dunya News) – Exports, in the first three months of the fiscal year have lowered by at least 14 percent amid prevailing issues of the industries, Dunya News reported on Wednesday.
Statistics show that Pakistan’s exports stand at USD 5.16 billion after a 14 percent plunge. On the other hand, imports have reduced by at least 14.4 percent in July-September period. Imports worth USD 10.67 billion were recorded in the first three months of the ongoing fiscal year.
Trade deficit is holding position at US $5.5 billion in light of the current export and import situation of the country.
Industrialists and experts have held energy crisis and price not worth the product in international market reasons behind the plunge in exporting data.
The government has increased reliance on borrows to steady foreign reserves. Pakistan Bureau of Statistics issued the figures in the matter.
The last FY’s first quarter had exports worth USD 836 million more than 2015-16 July-September period. Exports are short by at least USD 516 million to meet the last FY’s quarter according to the International Monitory Fund’s (IMF) report issued on Pakistan’s economy.
The government is ASO facing a challenge with neighbouring China regarding trade. Though Pakistan-China trade has increased in the last five years however, the inter-flow of goods remains in favour China. Industry sector experts have said that the reason for the imbalance is high production cost, narrow range of Pakistan i products, energy crisis and lower quality as sector s potential is yet to be pushed further.
Market analysis shows that at least 80 percent of China s imports from Pakistan consist of cotton fabric and products. Thus Pakistan s exports to China are needed to be widened.