PAKISTAN: The country is facing $18bn current account deficit (CAD) after the six months of fiscal year, started in July 2017, as compared to $14.4billion of the same period last year, the State Bank of Pakistan (SBP) reported on Thursday
The astronomical surge in imports against the exports, hike in US-dollar values, and lack of foreign direct investment (FDI) are one those contributing factors that lead to the 42.5pc surge in CAD than last year, furthermore, the political instability of the country added to the economical miseries.
The foreign investors are reluctant to invest following the current uncertain political volatility, which has damaged the reputation of the country across the world.
According to the latest data of Pakistan Bureau of Statistics, Pakistan’s exports have swelled by 14.81 percent to $1.98 billion in December 2017 from $1.72 billion of December 2016.
According to SBP data released earlier this week, Pakistan’s import bill had touched $55.8 billion during the last fiscal year which is more than double of the total export’s inflows of $24.772 billion. SBP has issued a list of 131 items to impose 100 per cent cash margin on the import of goods to overcome the rising import of luxurious goods. Further, SBP is persistently facing payment pressure of international donor agencies including the International Monetary Fund (IMF).
The government has taken various maneuvers to curtail the deficit, includes imposition of regulatory duties on non-essential imports, provision of un-interrupted energy to the export-oriented industries, the export package worth Rs180 billion, and state of Pakistan said, “These measures, together with the recent market-driven adjustment in the exchange rate would help in narrowing the current account deficit, thereby reducing the gross financing need,” in a recent statement.