News update: – 27 January 2020, according to the reports of this month’s import and export progress statement. The Import falls while export is increasing slowly as it gets challenging to tackle for Pakistan economy.
Furthermore, the government has addressed an imminent crisis in the external account and avoided a growing deficit in the balance of payments. The trade deficit, which reached a maximum of $ 37.6 billion in economic year 18, decreased $ 5.8 billion to $ 31.8 billion in fiscal year 19. The trade shortage declined further in the first half of fiscal year 20.
Moreover, the predictions from senior economist’s statements show that Imports are expected to remain below the $ 50 billion beginnings this fiscal year, reversing the recent trend of increased imports. Though Pakistan has been able to limit imports and reduce exchange rate unpredictability, the challenge lies in increasing export development.
Though, it is significant to note that Pakistan has one of the lowest values of exports of goods and services as a percentage of gross domestic product (GDP). While the export worth fell from its peak of 16.7% in 2003. The largest decrease was reported between 2014 and 2017, as the value decreased from 12.2% to 8.3%. It recovered slightly in 2018. By the development of the export growth rate, the value is likely to increase in 2019 and 2020.
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