Pakistan’s exports have seen a decline for the third consecutive month. At the same time, the forex reserve continues to decline and the reserves are currently equal to the country’s import bill of less than one and a half months.
Pakistani economy got double blow
Pakistan’s economy has suffered two setbacks one after the other in the month of November. The country’s foreign exchange reserves, which are struggling with deteriorating economic conditions, have fallen further. Along with this, there has been a decline in exports for the third consecutive month. The government of Pakistan claims that the conditions are improving and imports are being curbed, however, on the basis of informed figures, there is apprehension that the economy is under pressure instead of recovery and if the fear of recession in the global market next year proves to be true. If this happens then Pakistan’s economy can derail.
Exports declined for the third consecutive month
According to the data released by the government, there has been a decline in the country’s exports in the month of November and this has been the third consecutive month when the country’s exports have decreased. According to the data, exports fell by 18.3 percent to $ 2.37 billion in November compared to the previous year. In November last year, this figure was $ 2.9 billion. However, in the month of November, there has been a decline in Pakistan’s imports compared to last year, it has come down to the level of $ 5.25 billion with a decline of 33 percent. The government has not given any official statement regarding the decline in exports. However, Dawn has written quoting market experts that due to sharp fluctuations in exchange rates, the export figures were affected. Apart from this, constraints in domestic supply and lack of demand in foreign markets are also being cited as the reason for the decline in exports.
Fall in foreign exchange reserves
At the same time, the second blow to the economy has come from the decline in foreign exchange reserves. Despite the decrease in imports, the country’s foreign exchange reserves are also slipping. According to the data given by the State Bank of Pakistan, foreign exchange reserves fell by 4.2 percent to $ 7.498 billion in the week ended November 25. According to the import figures of November, this stock is equal to the import bill of less than one and a half months. This situation is when the import has decreased by 33 percent in November as compared to last year.
There is every possibility of further decline in the reserve in the coming times. In fact, the State Bank of Pakistan has to pay $1 billion to depositors in early December. Pakistan has to pay a debt equal to many times of the entire reserve during the entire financial year (July to June). Pakistan’s dwindling reserves are affecting the country’s credibility in the international market where Pakistani bonds are trading at half the actual prices. For this reason, Pakistan is not able to raise money through bonds even if it wants to and it has to face the IMF and allied countries.