The government has signed dozens of trade agreements with various friendly and unfriendly countries, but exports are nose-diving and imports are sharply increasing, spilling the trade deficit up to 42 percent year-on-year during the last 11 months of the current fiscal year. The country showed the worst economic performance during the previous Pakistan People’s Party government, but strangely enough the exports touched $25 billion mark during its rule. However, the trade deficit was recorded at $20.435 billion when the Pakistan Muslim League-Nawaz took over the rein of the country in 2013. Ironically, the party came to power on the slogan of business, business and business but failed to touch the figure of $25 billion. Instead, exports have been sliding down and imports are rising, pushing the foreign exchange reserves to the dangerous zone. Reports suggest the deficit crossed $3.4 billion mark just in the month of May, which are nearly 61 percent of the same period last year. According to experts, the country could face balance of payment problem as the industrial surplus is out of question and the rate of falling exports has not be arrested. The volume of import is rising despite tough decisions made by the government to minimize the import bill.
The data revealed by the Pakistan Bureau of Statistics from July 2016 to May 2017 shows the overall imports crossed $48.5 billion mark year-on-year. The imports, which remained $44.9 billion in 2012-13,will cross $53 billion during outgoing fiscal year. Strangely enough, the exports are falling despite guarantee of incessant power supply to the industrial sector. The government also introduced concessional electricity tariff for the export-oriented industries. However, exports fell to $18.5 billion from $19.1 billion in one year and there is no hope the government will be able to meet its export target of $35 billion set for 2018. Earlier, the government had announced a subsidy package of Rs180 billion for textile, clothing, sports, surgical, leather and carpet sectors. Under the three year Strategic Trade Policy launched in 2015, the Ministry of Commerce has notified five cash support schemes to improve product design, encourage diversification of products and facilitate branding and certification. There is a need to export value added goods rather than food items and it is yet to be seen how the government manages economic affairs in the given circumstances. Until the government earns foreign exchange by enhancing exports, the country will continue to face balance of payment problem.
