Update: 03 dec. 2021 09:00 STI
Islamabad [Pakistan], Dec 3 (ANI): Pakistan’s trade balance is deteriorating at an accelerating rate, adding to the economic and financial woes it faces.
Pakistan’s trade deficit increased sharply to reach $ 5.11 billion in November 2021 from $ 1.94 billion in the same month of last year 2020, with an increase of 163%, according to News International.
It shows an alarming trend, as it will increase the pressures on the current account deficit (CAD) in the coming months and without ensuring inflows of dollars mainly through debt-creating instruments. With the blessing of the IMF, the pressure on the exchange rate could intensify further in the weeks and months to come, according to News International.
Additionally, there is a continued stock market crash and exchange rate depreciation as it plunged.
Meanwhile, Pakistan faces significant challenges such as increasing current account deficit, increasing inflation and high exchange rate volatility.
The overall trade deficit increased sharply and amounted to US $ 20.7 billion in the first five months (July-November) of the current fiscal year, with exports reaching US $ 12.37 billion, but imports reached 33.11 billion US dollars. The trade deficit stood at US $ 9.54 billion in the same five months of the previous fiscal year. The trade deficit in the five months of fiscal 2022 increased 117%, according to News International.
Previously, Pakistan had tried to reduce the current account deficit mainly by reducing the import bill (ANI)