Foreign trade and international revenue


 Foreign trade and international revenue and expenditure
Pakistan is the fourth-largest cotton producer in the world. Textiles and garments are Pakistan’s main export products, accounting for more than half of total exports. Agricultural exports account for 20% of exports, half of which is rice, and the rest are mainly fruits and sugar. On the import side, Pakistan relies on foreign oil products, and global oil prices have an impact on current accounts.
The climate impact on cotton production in 2016 will continue to affect Pakistan’s textile exports in 2017. Although global low oil prices have led to lower import values, the trade deficit has continued to increase. The trade deficit in 2014/15 was US$ 17.284 billion and the 2015/16 trade deficit was 184.78. Billion U.S. dollars; As the demand for imported investment products increased and global oil prices rebounded, the trade deficit for 2016/17 increased to US$ 23.86 billion. The IMF estimated that the trade deficit for 2017/18 was US$ 24.848 billion.
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As the demand for imports increases due to infrastructure investment projects, the commodity trade deficit in dollars will continue to increase in the future. It is estimated that the major shortfall in the current account deficit will be the main reason for the overall economic risks. Although future exports will benefit from the growth of global trade and the increase in demand for EU products, Pakistan’s exports (especially the apparel industry) have been restricted due to infrastructure and competition in the clothing industry in South Asia and other parts of Southeast Asia has become increasingly fierce. Other business opportunities.
Exchange rate
Remittances from overseas workers are still important sources of current account, and the continuously increasing foreign exchange deposits are crucial for stabilizing the exchange rate. However, Pakistan’s Rupee weakened due to Pakistan’s continued trade deficit, and the Pakistan Rupee exchange rate was Rs 98.6 from the end of 2013/14. Against the US dollar, the depreciation of the 2015/16 period was 104.7 rupees against the US dollar.

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