Exports showing upward trend: Dar

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Exports showing upward trend: Dar

ISLAMABAD, May 25 (APP): Minister for Finance Muhammad Ishaq
Dar on Thursday said the prime minister had announced various measures
and packages to boost exports, which had started producing results as
in the third and fourth quarters of current fiscal year exports have shown upward trend.
He stated this at a press conference while launching Economic Survey, for outgoing year 2016-17 here today.
According to the survey,Pakistan external sector continued facing stress
during 2016-17.
The imports continued to grow at a much faster rate and grew
by a large percentage of 18.7 during the first nine months of the
FY 2017 as compared to the previous years.
The year on year and month on month trend was now in positive
zone as the exports during March 2017 grew by 3.6 % as compared to
March 2016 and grew by 9.95 % as compared to February 2017.
An impressive performance in March 2017 hints at a faster
recovery and suggesting that the negative effects of exports are
bottoming out.
During current fiscal year, Jul- Mar period , Pakistan’s
imports were showing rising trend at a relatively faster rate (18.7
percent) due to the increased economic activity as part of China
pakistan Economic Corridor (CPEC). Particularly in the energy
sector.
The construction projects under CPEC require heavy machinery
that has to be imported.
It is also observed that the economy was currently being led
both by investment as well as consumption,resulting in relatively
higher levels of imports.
The sharp increase in imports may not be a cause for major
worry,the imports during the current fiscal year included around
US $ 12 billion of capital goods (machinery,metals) which would
eventually increase the country’s industrial capacity and help
export to flourish.
The increase in import of machinery will have multiplier
effect on the economy as the manufacturing has the highest
backward linkage among the major sectors.