FPCCI ex-president asks govt to focus on exports, industry

As Pakistan’s trade deficit widened by 32 percent to $2.683 billion in December, businessmen on Sunday urged the government to focus on exports as imports have now started picking up. 

Increase in imports indicates growing economic activity, but signal a widening trade deficit which is not good for the economy.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former president Mian Anjum Nisar, who is also chairman of the Businessmen Panel, stated that Pakistan’s trade deficit widened nearly one-third in Dec 2020 despite a much-trumpeted increase in exports but it was not sufficient to match the surge in imports that jumped to $5 billion.

He said that economic managers were boasting of their performance on the plea of current account balance, which increased to $447 million in Nov 2020 for the fifth month in a row.

He pointed out that with a view to achieve consistency in current account surplus for a long period without compromising industrial growth the government will have to focus on increasing the exports and put the business and trade issues on priority, otherwise, the economic problems and balance of payment could be disturbed further with the growing trade deficit, he warned.