The International Monetary Fund (IMF) has projected a substantial increase in Pakistan’s trade deficit for the upcoming fiscal year.
According to the latest IMF report, the trade deficit is expected to widen by $4.165 billion, reaching an estimated $27.923 billion.
The forecast indicates a notable rise in both imports and exports. Pakistan’s imports are anticipated to grow by $5.517 billion, pushing the total to $60.48 billion.
Exports, meanwhile, are expected to see a more modest increase of $1.352 billion, bringing the total to $32.56 billion.
In comparison, the current fiscal year is projected to close with a trade deficit of $23.76 billion, with imports and exports estimated at $54.96 billion and $31.2 billion, respectively.
This widening trade deficit underscores ongoing economic challenges for Pakistan, which is striving to stabilize its economy amid various fiscal pressures.
The IMF’s projections follow a recent visit by an IMF delegation led by Mission Chief Nathan Porter, who engaged in extensive discussions with Pakistani officials from May 13 to May 23.
Also read: IMF Board to review $1.1 Billion Funding for Pakistan on April 29′
During these talks, Pakistan formally requested a new loan program from the IMF.
The IMF’s statement highlighted the Pakistani government’s concerted efforts to boost revenue, emphasizing the importance of fair tax collection from privileged sectors to enhance fiscal sustainability.
