‘External trade once again flashing warning signal’
KARACHI: Pakistan’s external trade is once again flashing a warning signal, as export growth loses momentum while imports continue to rise sharply. This widening divergence between exports and imports is putting renewed pressure on the country’s trade balance and contributing to a further expansion of the trade deficit, said Ateeq ur Rehman economic & financial analyst. The exporters problems…
Pakistan's external trade is facing fresh challenges as export growth slows while imports surge, widening the trade deficit, an economic analyst warns. High production and manufacturing costs, including expensive electricity and gas tariffs, record fuel prices, and burdensome taxes, are straining exporters. Moreover, a shortage of vessel space, disrupted cargo movement, and strikes by transporters further complicate matters.
The consequences of export delays can be severe, leading to penalties, price cuts, and damage claims for industries. To address these issues, Ateeq ur Rehman suggests ensuring smooth and uninterrupted cargo movement, which is vital for industrial activity and maintaining export competitiveness. Reaching a target of USD100 billion in exports within two years would demand an annual growth rate of 40 percent, a significant challenge, but not insurmountable.
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