The International Monetary Fund (IMF) has forecasted a significant increase in Pakistan's trade deficit for the coming financial year, highlighting challenges ahead for the country's economic stability.
The Fund has estimated an increase in Pakistan's exports and imports in the new financial year.
According to IMF estimates, Pakistan's trade deficit is projected to rise by approximately $4.165 billion. Sources indicate that the overall trade deficit for the next financial year could surpass $27.92 billion, reflecting substantial growth in both exports and imports.
The IMF predicts a notable increase in Pakistan's import volume, which is expected to reach $60.48 billion in the upcoming financial year. This marks an estimated increase of $5.517 billion compared to the current fiscal year.
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Conversely, Pakistan's exports are also anticipated to grow, albeit at a slower pace. The IMF projects an increase of $1.352 billion in exports, bringing the total expected export volume to $32.56 billion for the next financial year.
The Ministry of Finance's sources reveal that the current fiscal year's trade deficit is expected to be around $23.76 billion. By the end of this financial year, Pakistan's exports are likely to total $31.20 billion.
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Last week, Pakistan and the IMF made notable progress in negotiations for a new loan program, despite concluding the recent round of talks without a staff-level agreement.
The IMF's 10-day visit to Pakistan, which began on May 13, laid a promising foundation for future discussions aimed at securing a comprehensive financial package, said a statement issued at the conclusion of the visit.
The IMF delegation's visit emphasized critical areas such as human resource development, social security, and addressing the impacts of climate change.
