Pakistan’s trade deficit to a new level
Pakistan is a country which is full of resources but yet facing the trade deficit of 30 billion US dollar. It has worsened with the rate of 42% in the last 11 months which is an all new record.
Exports of Pakistan have declined by 3% while on the other hand; the rate of imports has increased by 21%, which points towards a breath taking moment for the trade deficit.
Although Pakistan’s main import “oil” is available at low price internationally compared to the previous years but still the imports net worth is 2 and half times more than the exports.
Looking into such situation tons of questions arise such as why did the exports fall?
Why did the imports rise? Are living standards improving or not? What measures should be taken to control trade deficit? The size of the deficit is increasing day by day so the government needs to intervene in between to fix this immediately. If this problem could not have sort out this will further make the trade balance deficit whether it is the year of boom or relation
The none Oil commodity performed better as there was the increase of 12% compared to the year 2015 but some other third world countries such as Vietnam, Bangladesh, performed a bit better in global trade comparing to Pakistan.
there are many reasons why Pakistan lack behind, first and a foremost reason is the wrong policies towards international trade and other than that the lack of administration is also one of the main reason why Pakistan is facing trade deficit.
Pakistan has followed a policy in which the exports are not promoted while imports are tried to be substituted instead.