During the first quarter of the current fiscal year 2019-20 from July to September, Pakistan’s Trade Deficit has been reduced significantly by 35 percent. The International Monetary Fund (IMF) has shown contentment over the recent progress by Pakistan.
IMFs team visited Pakistan on Thursday and met Prime Minister’s Advisor on Commerce, Textile, Industries & Production and Investment Abdul Razaq Dawood. The IMF team was briefed about the current economic performance, the measures taken to control the widening trade deficit of the country, Pakistan’s commerce secretary Sardar Ahmed Nawaz Sukhera and some other senior officials also attended the meeting.
The IMF was informed that trade deficit was recorded at $5.73 billion during the period July-September 2019 as compared to previously recorded figure which was $8.79 billion which shows a significant reduction of 34.85 percent.
The team was informed that Pakistan has successfully curbed imports to the country which has wisely reflected in the shrinking trade deficit. The import figure went down from the previously recorded $14.17 billion during the first quarter of the Fiscal year 2018-19 to $11.25 in the current fiscal year. The imports were reduced by $2.92 billion which is 20.59 percent.
However, Pakistan’s export industry is still progressing very slow, the country exports witnessed a minor growth of 2.75 percent during the period under discussion. Pakistan has only exported $5.52 billion of goods during the first quarter of the current fiscal year.
The IMF team was informed that Pakistan is going to chalk out some plans to improve the country’s exports in order to further remove the trade deficit and help the economy to flourish.
The IMF team has advised Pakistan to simply taxation and improve ease of doing business in Pakistan in order to attract more foreign investment in the country which will eventually help increase exports of the country. The government is also working on a new tariff policy which will resolve the trade issues with other countries, said the PM advisor. The IMF team has also met and discussed complex tax matters with FBR on Wednesday, they reviewed the current FBR policies, income tax system, schemes for small businesses, and integration between federal and provincial tax authorities and stressed over the simplification of the tax system in Pakistan.