IMF projects Pakistan's rising trade deficit in new fiscal year

The International Monetary Fund (IMF) has projected that Pakistan's trade deficit is set to rise in the upcoming fiscal year. The forecast indicates a growth in both exports and imports, with a predicted increase of $4.165 billion in the trade deficit. Imports are expected to surge by $5.517 billion, while exports are estimated to rise by $1.352 billion. This could result in a trade deficit of $27.923 billion for Pakistan in the new fiscal year, with imports reaching $60.48 billion and exports at $32.56 billion.

In the current fiscal year, Pakistan's trade deficit is anticipated to be $23.76 billion, with imports estimated at $54.96 billion and exports at $31.2 billion. The IMF has confirmed that Pakistan has formally requested a new loan program after discussions with an IMF delegation. The delegation highlighted the importance of fair tax collection from privileged sectors, recognizing Pakistan's efforts to enhance revenue.

The projected increase in Pakistan's trade deficit underscores the challenges the country faces in balancing its imports and exports. Efforts to boost exports and manage imports effectively will be crucial in addressing this economic concern. The government's engagement with international financial institutions like the IMF reflects a commitment to addressing economic imbalances and fostering sustainable growth.