Trade deficit swells to record $43.3bn

[Norwegian]

ISLAMABAD: Pakistan’s merchandise trade deficit widened by an alarming 57.85 per cent year-on-year to an all-time high at $43.33 billion during the first 11 months of 2021-22 through May on the back of higher-than-expected imports, Pakistan Bureau of Statistics data showed on Thursday.

The 11-month deficit has already crossed the full year’s highest trade deficit of $37bn in 2018 when the PML-N government came to an end, mostly led by the China-Pakistan Economic Corridor-related imports. This year’s trade deficit is propelled by the highest ever increase in oil prices in the international market.

The trade deficit has been on the rise owing to an unprecedented increase in imports due to a rise in global commodity prices, while exports stagnated at around $2.5bn to $2.8bn a month, mostly those of semi-finished products and raw materials.

In May, the trade deficit came in at $4.04bn, growing by around 6.90pc over April and by 11.50pc compared to May 2021.

The trade deficit reached an all-time high of $37.7bn in the 2017-18 fiscal year. However, the government’s measures led to a drop in it to $31.8bn the next year (2018-19) and then a further decline to $23.2bn in 2019-20.

However, the trend then reversed and the trade gap jumped to $30.8bn in the 2020-21 fiscal year and is expected to reach an all-time high during the ongoing fiscal year.

Trade deficit swells to record $43.3bn

Deficit on the rise owing to an unprecedented increase in imports due to a rise in global commodity prices, stagnant exports.

www.dawn.com

 

[FOOLS_NIGHTMARE]

You are not giving good publicity to the previous regime.

 

[Wood]

You are not giving good publicity to the previous regime.

OP wants you to believe that in 2 months, PDM is responsible for structurally changing Pakistan's economy to achieve a high trade deficit. But until two months ago, it was all about high GDP growth rate. The effect of high growth on trade deficit was not a problem at all. Also, fuel subsidy was fully funded by budget

 

[FOOLS_NIGHTMARE]

OP wants you to believe that in 2 months, PDM is responsible for structurally changing Pakistan's economy

The OP lives in Cloud Cuckoo land, let him enjoy the moment.

 

[ziaulislam]

You are not giving good publicity to the previous regime.

You need brains to understand this
Trade deficit all time high due to high fuel prices but CAD still less then 2018. Reserves at better positions and exports booming

 

[Norwegian]

You are not giving good publicity to the previous regime.

Try this

OP wants you to believe that in 2 months, PDM is responsible for structurally changing Pakistan's economy to achieve a high trade deficit. But until two months ago, it was all about high GDP growth rate. The effect of high growth on trade deficit was not a problem at all. Also, fuel subsidy was fully funded by budget

Yes, Imran Khan is responsible for international high prices of oil and gas: Patwari Media until Imran Khan was ousted
@FOOLS_NIGHTMARE

The OP lives in Cloud Cuckoo land, let him enjoy the moment.

This PATWARI lives in Bughaz Imran land. Let him enjoy the moment @Wood

You need brains to understand this
Trade deficit all time high due to high fuel prices but CAD still less then 2018. Reserves at better positions and exports booming

Can't debate Patwaris with reason. They are thick concrete walls

 

[Wood]

Try this View attachment 850650View attachment 850651View attachment 850652


Yes, Imran Khan is responsible for international high prices of oil and gas: Patwari Media until Imran Khan was ousted
@FOOLS_NIGHTMARE


This PATWARI lives in Bughaz Imran land. Let him enjoy the moment @Wood


Can't debate Patwaris with reason. They are thick concrete walls

So if you know that high international fuel prices are the reason for high deficit, then why try to blame PDM?

If high fuel prices are not affordable for a country, then it should not try to grow faster than what it can affordably consume.

 

[KediKesenFare3]

You need brains to understand this
Trade deficit all time high due to high fuel prices but CAD still less then 2018. Reserves at better positions and exports booming

But the article mentions specifically merchandise trade. Doesn't this exclude energy imports?

 

[ziaulislam]

So if you know that high international fuel prices are the reason for high deficit, then why try to blame PDM?

If high fuel prices are not affordable for a country, then it should not try to grow faster than what it can affordably consume.

For lying to public, causing panic, inability to roll over 6b$ of loans, inability to negotiate with IMF basic paralysis..or infact lack of presence

There back and forth with respect to polciy on exports..exporters are saying they cant meet orders..inability to provide power to industries

The list so huge that we are suprised how can u **** so many things at same time

 

[Norwegian]

So if you know that high international fuel prices are the reason for high deficit, then why try to blame PDM?

I do not blame PDM, I blame pro PDM / anti Imran media that used to bash Imran Khan for raising fuel prices despite them rising in international market. But are now on either complete silent mode or actually defending it since Imran is no longer in govt. I am against this blatant hypocrisy of media. @FOOLS_NIGHTMARE

 

[Wood]

For lying to public, causing panic, inability to roll over 6b$ of loans, inability to negotiate with IMF basic paralysis..or infact lack of presence

There back and forth with respect to polciy on exports..exporters are saying they cant meet orders..inability to provide power to industries

The list so huge that we are suprised how can u **** so many things at same time

Inability to quickly negotiate a deal with IMF is because IMF does not approve Imran's fuel subsidy. PTI can claim that fuel subsidy is 'funded by budget', but IMF wanted that to be removed. PDM was caught in a policy paralysis momentarily because of Imran's threats to make the country politically unstable.

I don't know much about export policy of PDM (or Pakistan in general) so I cannot comment much. But I do know that industries usually import goods (that are required for manufacturing) by issuing IOUs to external players. This is even true for oil imports. One problem with sudden devaluation of currency is that these IOUs will suddenly become more expensive than the time that were issued in. Recent devaluation in currency is (at least partially) related to the political instability caused by..

I do not blame PDM, I blame pro PDM / anti Imran media that used to bash Imran Khan for raising fuel prices despite them rising in international market. But are now on either complete silent mode or actually defending it since Imran is no longer in govt. I am against this blatant hypocrisy of media. @FOOLS_NIGHTMARE View attachment 850656

So you will do the same thing that you do not want the other parties to do. Very mature

 

[ziaulislam]

Inability to quickly negotiate a deal with IMF is because IMF does not approve Imran's fuel subsidy. PTI can claim that fuel subsidy is 'funded by budget', but IMF wanted that to be removed. PDM was caught in a policy paralysis momentarily because of Imran's threats to make the country politically unstable.

I don't know much about export policy of PDM (or Pakistan in general) so I cannot comment much. But I do know that industries usually import goods (that are required for manufacturing) by issuing IOUs to external players. This is even true for oil imports. One problem with sudden devaluation of currency is that these IOUs will suddenly become more expensive than the time that were issued in. Recent devaluation in currency is (at least partially) related to the political instability caused by..


So you will do the same thing that you do not want the other parties to do. Very mature

Still inability isnt it??
It isnt because of IK(he is not in power in case you dont remeber)، its because of PDM/miftah ismail saying on record that we wont increase price by 1 cent on IMF dictation?
I hope this isnt too complicated? Is it??

 

[Norwegian]

So you will do the same thing that you do not want the other parties to do.

I didn't blame this PDM govt for trade deficit in this thread I started. If you see it please quote. Good luck

 

[Wood]

Still inability isnt it??
It isnt because of IK(he is not in power in case you dont remeber)، its because of PDM/miftah ismail saying on record that we wont increase price by 1 cent on IMF dictation?
I hope this isnt too complicated? Is it??

Yes, PDM is guilty of not being exemplary in resisting Imran's onslaught. They should have rolled back the subsidy sooner than now. But I will also blame the politically motivated actions of PTI subsidy program for the current tough macro economic condition of Pakistan. Fair is fair

I didn't blame this PDM govt for trade deficit in this thread I started. If you see it please quote. Good luck

Sure, you opened this thread in an effort to publish news in a non-partisan way. I was mistaken to assume that you tried to paint PDM in bad light

 

[Norwegian]

Sure, you opened this thread in an effort to publish news in a non-partisan way. I was mistaken to assume that you tried to paint PDM in bad light

No problem. I at least support PM Showbaz Sharif in that Pakistan needs across the board charter of economy similar to your India after 1990 economic crisis. Parties should not be allowed to do politics on economy / change economic polices for at least 10 - 15 years while the economy is put on sustainable growth path