Country’s export surges by 10.15% in October and 3.52% in J

Trade deficit shrinks by 1.97% in last four-month

KARACHI: The country’s export has started taking off as it surged by 3.52 per cent in first four-month (July-Oct 2018) of the current fiscal year and stood at $7.285 billion compared to $7.037 billion in the same period last year. However, it surged by 10.15 per cent to $1.903 billion in October 2018 compared to September 2018.

Despite sliding the trade deficit by 1.97 per cent in last four months, it stood at $11.786 billion in last four month of current fiscal year compared to $12.023 billion stood in the same period last year.

New cabinet of Prime Minister Imran Khan has taken over the charge of federal government in August 2018 and since that time he is trying to overcome the rising import and current account deficit, which had touched $18.9 billion in 2017-18.

Finance Minister Asad Umer in his statement had claimed that the balance of payment crisis of the country is over after the support from Saudi Arab’s government and visit of the Prime Minister to China. Saudi Arabia has promised to give financial assistant of $6 billion to Pakistan, including $3 billion oil import on deferred payments for next three year. Meanwhile, the Chinese government had also promised to double or triple its import from Pakistan with other financial supports.

A team of the International Monetary Fund (IMF) is also on a 6-day visit to Pakistan, and Pakistan may submit its plan to get $6-$8 billion financial assistance from it. However, the Pakistani team had submitted its recommendations and is negotiating with it.

On November 2, 2018, the reserves of the State Bank of Pakistan (SBP) stood at $7.679 billion, which are less than the import bill of five-weeks. Total reserves of the country stood at $14.068 billion.

The imports of the country have gone up by 0.06 per cent to $19.071 billion in July-October 2018-19 compared to $19.060 billion in the same period last year. On YoY basis it decreased by 1 per cent to $4.841 billion in October 2018, compared to $4.890 billion in same period last year. On Month-on-Month basis it increased by 9.28 per cent.

The import bills had touched $55.8 billion in 2017-18 which is more than double of the total export’s inflows of $24.772 billion.

Asad Umer said that the current account deficit has started coming down from October 2018 and it will further decrease as the imports had declined while the remittances are increasing. The government is taking more effective measures to enhance exports up to $4 billion per month.

The market experts said the policies of the previous government were only supporting for few selected exporters, but now the government has opened its door for everyone who wants to export their goods.

The Pak-US relations rhetoric currently is based on calls for greater market access to the United States rather than more aid. At $3.9 billion of exports in fiscal year 2017-18, the US is already the single largest market for Pakistan’s exports by far. To contextualize it keep this in mind, Pakistan exported more to the US last fiscal year than UK and China combined which were the second and third largest export markets respectively.