KARACHI: Keeping in view the recent trend of rising imports, the Businessmen Panel (BMP) has appealed to the government to focus on increasing exports to maintain the widening trade deficit, which will increase in December 2020. 32% increase to رہی 2.683 billion.
The BMP, the ruling group of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), pointed out that in December 2020, the country’s trade deficit widened by about one-third.
BMP Chairman Mian Anjum Nisar said that despite the huge increase in exports, Pakistan’s trade deficit was increasing. However, “it was not enough to meet the increase in imports which reached 5 5 billion.”
“After the removal of regulatory duty on imports of raw materials and semi-finished products, the pace of growth in imports is expected to accelerate further in the coming months,” Nisar said. Between July and December, the trade deficit widened by 6.44% to .4 12.42 billion. Earlier in the fiscal year 20, the country’s trade deficit was reduced from 31 31.88 billion to 23 23 billion. “Under absolute terms, Pakistan’s exports increased by only 35 2.35 billion in December 2020 from 1. 1.98 billion the previous year, which should be further accelerated to increase the trade deficit,” he added.
The BMP chairman pointed out that long-term stability in the current account surplus is to be achieved without compromising on industrial growth. The government must focus on increasing exports and prioritizing trade and commerce. Otherwise, he warned, economic problems and a growing balance of payments could upset the trade deficit.
The import substitution required long-term planning, so Pakistan became self-sufficient. He also stressed the need to adopt international best practices for consultation with priority sectors and international experts to achieve success.
To take advantage of the status of GSP Plus, export goods should be manufactured as per international demand. He said that many industries and sectors were neglected in the past.