The need to obtain a new program from the IMF increased, exports and remittances will not increase significantly, Ministry of Finance – Photo: File
Islamabad: The federal government has estimated a current account deficit of $9.20 billion during the next fiscal year, which means that Pakistan will require an amount equivalent to $34 billion in external expenditures during the next fiscal year, while the current account deficit and Exports and remittances do not seem to increase significantly in view of external aid requirements.
According to finance ministry sources, the proposed three-year economic framework estimates show that exports and remittances will not grow much during the next financial year i.e. 2023-24. The total volume of exports and remittances for the next fiscal year is estimated at $61 billion, which is almost equal to the country’s total imports, and therefore the government will need more external debt to finance the next fiscal year.
Apart from this, the earlier loans taken from China, Saudi Arabia and the United Arab Emirates will have to be rescheduled and the need to obtain new programs from international financial funds has also increased.
According to the estimate of the Ministry of Finance, the current account deficit will increase to 9 billion 20 million dollars during the next financial year, which is 2.3 percent of the gross national product (GDP). Compared to the financial year, 31 percent or 2 billion 20 million dollars is more.
According to the report, exports during the current financial year are likely to reach the level of 30 billion dollars, but in view of the global trade situation, this export volume is likely to be around 28 billion dollars, while the export target was set at 38 billion dollars in the budget. .
This meant that the government would have to borrow again and restrict imports to cover the $10 billion deficit. Similarly, if the remittances are reviewed, during the next fiscal year, its total volume is likely to reach 30 billion 900 million dollars, which is only 4.7% or 1 billion 700 million dollars more than the estimate of the current fiscal year. will remain
According to the Ministry of Finance, imports are expected to increase by 9% during the next fiscal year and may exceed $60 billion with an increase of $5 billion.
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