Friday, August 19, 2022

Domestic exports down 40% over imports: Finance Minister

Finance Minister Muftah Ismail is presenting the Economic Review Report for the financial year 2012-13, which shows that the growth rate was 5.97% as against 4.8%.

Presenting the Economic Survey in Islamabad along with Planning Minister Ahsan Iqbal and Khurram Dastgir, Finance Minister Muftah Ismail said that the problem of Pakistan is unfortunate that when we make progress, current accounts run into deficit.

He said that with the new estimate of 5.97% growth in GDP in the current financial year, the current account deficit has gone out of control and the balance of payments crisis has come.

“This year, our imports will be between سے 76 billion and 77 77 billion, which is also the highest in terms of historical and GDP ratio,” he added.

He said that exports have also increased but only 28% due to which the trade deficit has reached 45 45 billion.

Muftah Ismail said that there was a time when Pakistan’s exports were halved compared to its imports which is now only 40 per cent. So we have to rely on remittances and loans which is why we often face the problem of balance of payments.

He said that during Code 19, when world trade was low, petroleum products, gas became cheaper, the balance of payments was balanced but then as it grew and the same formula was adopted, the balance of payments deteriorated.

The finance minister said that after a long hiatus, Pakistan’s foreign exchange reserves have come down from 10 10 billion to 9. 9.6 billion and after receiving 2 2.4 billion from China by next Monday, it will rise again to 12 12 billion. Will come to the level of

He said that Pakistan’s economic direction needs to be improved. The price of oil in the world market has become very high due to which we also had to increase the prices by Rs.

He further said that we had to take difficult decisions, the country was on the verge of bankruptcy, now we have deviated from this path, now we are on the path of stability and will soon see stable growth.

He said that there are two aspects of our growth one is that which is stable in which recurrent current account deficit, balance of payments is not bad.

Muftah Ismail said that the GDP growth rate for the current financial year has been 5.97% but as usual, the current account deficit has again raised the issue of balance of payments.

“We need comprehensive growth. We make the mistake of giving incentives to the investor class to carry on trade, but the result is that when the princes invest in industries and get incentives, imports go up a lot,” he said. Are gone

He said that if there is comprehensive growth, if the purchasing power of the poor and middle class is increased, it will increase the local and agricultural production but the import bill will not increase because when the princes spend, it has more imported goods. While the poor person spends on things like flour, pulses etc.



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