ISLAMABAD: A huge decline of $19.5 billion in imports gave a substantial relief to the government in trimming the trade and the current account deficit in 2022-23.
In FY23, the imports fell to 52 billion dollars, from 71.54 billion dollars in FY22. In monetary terms, the decline in imports stood at 19.54 billion dollars.
This is one of the major reasons for a substantial decline in the current account deficit.
The trade deficit also fell to 24.80 billion dollars in 2022-23, from 44.90 billion dollars in 2021-22. It led to a relief of 20.10 billion dollars to Pakistan in the last fiscal year.
Textile and National exports decline in FY23
The textile exports of Pakistan fell 14.6 percent during the fiscal year 2022-23. In the FY-23, textile exports dropped to $16.50 billion as compared to $19.32 billion during the fiscal year 2021-22..
Pakistan’s overall exports in 2022-23 totaled $27.73 billion against $31.78 billion during the corresponding period of 2021-22. Thus, Pakistan Bureau of Statistics reported a decrease of 12.73 per cent in exports in a year.
Meanwhile, the State Bank of Pakistan today reported a massive decline in the current account deficit in the fiscal year 2022-23. It is an outcome of a huge decline in imports due to curbs and a shortage of foreign exchange.
In the fiscal year 2022-23, the current account deficit fell to 2.91 billion dollars, from 17.82 billion dollars in the preceding financial year.
Meanwhile, in the month of June, the State Bank reported 315 million dollars surplus current account.
IMF’s free market policy hits rupee value
Moreover, the IMF’s demand for an intervention-free foreign exchange market in Pakistan has led to a significant increase in the value of the US dollar even after the disbursement of the IMF loan.
As the IMF handed over $1.2 billion to Pakistan under the Stand-By Arrangement on July 13, the value of the rupee improved.
However, it proved a temporary relief and the US dollar has, once again, hit the 290 rupees level in the open market trading on Wednesday morning.
