IMF forecasts substantial increase in Pakistan’s trade deficit

WASHINGTON: The International Monetary Fund (IMF) has projected a significant increase in Pakistan’s trade deficit for the upcoming fiscal year.

According to detailed forecasts, the IMF anticipates that Pakistan’s trade deficit will grow by $4.165 billion in the next fiscal year, driven by increases in both exports and imports. The IMF estimates that Pakistan’s imports will rise by $5.517 billion, while exports are expected to increase by $1.352 billion.

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The IMF’s projections indicate that Pakistan’s trade deficit could reach $27.923 billion. Specifically, the volume of imports is forecasted to be $60.48 billion, with exports estimated at $32.56 billion for the next fiscal year (FY2024-25).

For the current fiscal year (FY2023-24), Pakistan’s trade deficit is expected to be $23.76 billion, with imports estimated at $54.96 billion and exports projected to reach $31.2 billion by the end of the year.

Previously, the IMF issued an official statement following discussions with Pakistani officials, confirming that Islamabad has formally requested a new loan programme from the IMF.

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The IMF delegation, led by Mission Chief Nathan Porter, conducted extensive negotiations in Pakistan from May 13 to May 23, focusing on the country’s economic reforms and improvements.

The statement also highlighted the Pakistani government’s efforts to boost revenue and stressed the importance of equitable tax collection from privileged sectors. – INP