Economists believed that one major cause for a trade deficit could be that the country is growing faster than its trading partners in the world. They also believed that faster growth attracts investment, which, along with rising incomes, permits the country with the deficit to buy more imports. Moreover, when growth is slower, demand for imports slides and capital flows to greener pastures.
In Pakistan, Pakistan Bureau of Statistics (PBS) current report based on the provisional statistics of imports and exports shows the balance of trade in March-2018 was (-) 341,676 million in terms of Rupees and (-) 3,049 million in US dollars. The balance of trade figures cumulative from July-March, 2017-18 were (-) 2,935,838 million in terms of Rupees and (-) 27,268 million in US dollars.
The officials in the PBS also mentioned that exports from Pakistan during March-2018 is worth Rs250,065 million (provisional) as compared to Rs209,996 million (provisional) in February-2018 and Rs187,922 million during March-2017 explaining a rise of 19.08 percent over February-2018 but a rise of 33.07 percent over March, 2017. In terms of US dollars the Pakistan’s exports in March, 2018 was $ 2,231 million
|Balance Of Trade (bot) in Pakistan (US Million $)|
(provisional) as against to $ 1,902 million (provisional) in February, 2018 explaining a rise of 17.30 percent and by 24.36 percent as against to $1,794 million during March, 2017. Pakistan Bureau also mentioned that the exports during July-March, 2017-18 totaled Rs.1,839,968 million (provisional) as compared to Rs1,580,359 million during the same period of previous year explaining a rise of 16.43 percent. In terms of US dollars the exports during July-March, 2017-18 totaled $17,074 million (provisional) as compared to $15,097 million during the same period of previous year explaining a rise of 13.10 percent. Official also mentioned in a statistical statement that main products/commodities of exports during March, 2018 were Knitwear (Rs25,788 million), Readymade garments (Rs25,003 million), Cotton cloth (Rs22,977 million), Bedwear (Rs22,003 million), Rice others (Rs20,117 million), Cotton yarn (Rs14,330 million), Sugar (Rs9,321 million), Towels (Rs8,470 million), Madeup articles (excl. towels & bedwear) (Rs6,862 million) and Rice Basmati (Rs5,960 million).
Pakistani traders also expect various predictions from every fiscal budget and we all know that a budget assists in planning actual operations by forcing managers to consider how the scenarios might change and what steps should be taken now, and by encouraging managers to consider challenges before they arise.
Economists also urged that never before in Pakistan’s history have unluckily imports been over two-and-a-half times of exports as they are now. This unprecedented trade deficit has occurred despite the prevalence of relatively low global prices of our biggest import, oil. In these circumstances Pakistan needed to be familiar with some other states like their import and exports but hot whether which is caused and called an enemy for business. This impossible mission could not come in the regulatory way to maintain the difference of electricity in Pakistan.
Now it is the prime responsibility to the ruling party which types of facilities would be offered in the Budget 2018-19. Although, the officials of PBS also showed in their statistical report that the imports into Pakistan during March, 2018 amounted to Rs591,741 million (provisional) as compared to Rs529,775 million (provisional) during February, 2018 and Rs521,302 million during March, 2017 explaining a rise of 11.70 percent over February, 2018 and of 13.51 percent over March, 2017. In terms of US dollars the imports in March, 2018 was $5,280 million (provisional) as against to $4,797 million (provisional) during February, 2018 showing a rise of 10.07 percent and by 6.09 percent as against to $4,977 million in March, 2017.
Furthermore, imports during July-March, 2017-18 totaled Rs4,775,806 million (provisional) as against Rs4,016,558 million during the same period of last year showing a rise of 18.90 percent. In terms of US dollars the imports during July-March, 2017-18 totaled $44,342 million (provisional) as compared to $38,369 million during the same period previous year explaining a rise of 15.57 percent. It is also registered that main commodities of imports during March, 2018 were Petroleum products (Rs.61,343 million), Petroleum crude (Rs47,781 million), Iron & steel (Rs31,508 million), Plastic materials (Rs27,299 million), Natural gas, liquefied (Rs25,101 million), Palm oil (Rs22,204 million), Raw cotton (Rs20,508 million), Electrical machinery & apparatus (Rs19,283 million), Power generating machinery (Rs16,858 million) and Iron & steel scrap (Rs14,506 million), respectively.