The trade deficit of Pakistan could expand by $3 billion during the fiscal year 2023 (FY23) due to food items imports after their shortage due to torrential rains and ravaging floods across the country.
Sources in Finance Ministry have told ProPakistani that the export target for the FY23, set at $35 billion, may not be met due to floods in the country as the exports of various products including fruits, vegetables, tobacco, cement, leather, and leather products have slumped due to floods.
Secondly, imports of basic food items, like onions and potatoes are also being imported now to meet he local demand.
The sources added that on the flip side, the imports of wheat, pulses, sugar, construction machinery, and medicines are expected to increase during FY23, which ultimately could widen the trade deficit.
In order to achieve the export target, the government should take some extraordinary measures. It is already looking to access new markets in the European Union (EU) and the United States (US) to increase Pakistan’s export volume, sources said.
It is pertinent to mention here that Pakistan’s trade deficit stood at $6.296 billion during the first two months of FY23 after narrowing by $17.13 percent compared to the same period of FY22.
