Pakistan's Trade Deficit Surge: Economic Challenges Ahead
Pakistan's trade deficit increased significantly to USD 3.34 billion in September, a 46% rise from the previous year, driven by rising imports and declining exports. This puts pressure on the country's fragile external sector. Economists urge strengthening exports and curbing non-essential imports to stabilize the economy.
- Country:
- Pakistan
Pushed by a sharp rise in imports and a notable drop in exports, Pakistan's trade deficit soared to USD 3.34 billion in September, reflecting a 46% increase from the previous year. The growing gap raises concerns over the stability of the country's external sector.
Data from the Pakistan Bureau of Statistics indicates a 14% jump in imports, reaching USD 5.85 billion, while exports fell by 11.7% to USD 2.5 billion. Economists warn this widening deficit could deplete foreign reserves, impact the rupee's stability, and complicate debt repayments.
Experts highlight the need for Pakistan to diversify exports and reduce non-essential imports to avoid derailing economic gains achieved under the IMF-backed program. Focused efforts on industrial competitiveness and trade diversification are crucial for sustainable economic growth.
(With inputs from agencies.)
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