Pakistan's trade balance worsening sharply adding to economic woes

Pakistan's trade balance is worsening at an accelerated pace adding to its economic woes and financial problems it faces.

Pakistan's trade balance is worsening at an accelerated pace adding to its economic woes and financial problems it faces. Pakistan's trade deficit rose sharply to US dollars 5.11 billion in November 2021 against US dollars 1.94 billion in the same month of the last year 2020, witnessing a surge of 163 per cent, according to News International.

It shows an alarming trend, as it will mount pressures on the current account deficit (CAD) in the months ahead and without ensuring dollar inflows mainly through debt-creating instruments. With the blessings of the IMF, the pressure on the exchange rate might further escalate in weeks and months ahead, according to News International. Further, there is a continuous crash of the stock market and depreciating exchange rate as it nosedived.

Meanwhile, Pakistan faces significant challenges such as rising current account deficit, increasing inflation and high volatility in the exchange rate. The overall trade deficit has risen sharply and stood at US dollars 20.7 billion in the first five months (July-November) period of the current fiscal year as the exports fetched US dollars 12.37 billion but imports went up to US dollars 33.11 billion. The trade deficit stood at US dollars 9.54 billion in the same five months of the last fiscal year. The trade deficit in five months of FY2022 went up by 117 per cent, according to News International.

Earlier, Pakistan tried to reduce the current account deficit mainly through a cut in imports bill (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)