Country’s export surges by 2.24% in July-Jan 2018-19

KARACHI: The country’s export has only surged by 2.24 per cent in July-Jan period of the current fiscal year and stood at $13.231 billion compared to $12.941 billion in the same period last year. However, it declined by 1.78 per cent in January 2019 to $2.043 billion compared to $2.080 billion in December 2018.

Despite sliding the trade deficit by 9.66 per cent, the trade deficit stood at $19.264 billion in July-Jan 2018-19 compared to $21.324 billion stood in the same period last year.

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

The imports of the country have gone down by 5.17 per cent to $32.495 billion in July-Jan 2018-19 compared to $34.265 billion in the same period last year. On YoY basis it increased by 1.35 per cent to $4.504 billion in January 2019, compared to $4.444 billion in same period last year. On Month-on-Month basis it increased by 19.14 per cent.

The import bills is still much higher compared to total export’s inflows, the analyst said. Last year, the import bill was $55.8 billion.

Pakistan does not have enough foreign exchange reserves to pay its public and private external debt due over this year, a report by Moody’s said on Thursday. However the government of Imran Khan has managed to receive $4 billion from Saudi Arabia and United Arab Emirates in the head of financial assistance.

The Saudi government had promised to give $6 billion to Pakistan, including $3 billion oil import on deferred payments for next three year. Meanwhile, the Chinese government had also promised to give financial supports to Pakistan.

The government had also finalized deal to get $6 billion from the IMF in Dubai yesterday (Sunday) and it will receive this bailout package by the end of April this year, Asad Umer, Finance Minister said.

According to Moody’s report released, “the foreign exchange reserves are low, and gross borrowing requirements are large in Pakistan and Sri Lanka, threatening the ability of these governments to refinance debt and fund deficits affordably.”

The credit rating agency said in its report the total public and private external debt due over the next year is larger than foreign exchange reserves.

Foreign exchange reserves are on lower side in Pakistan. The lower reserves threaten government to refinance debt, it noted.

The State Bank reserves stood at $8.192 billion, which are less than the import bill of two-month. Total reserves of the country stood at $14.885 billion.

 

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