Exports to witness upward trend in March: Finance Ministry

ISLAMABAD: The exports from the country during March 2022 are expected to maintain their upward trend, aided by the export-oriented policies implemented in the recent past, the finance ministry said in a report.

The data for the month of March is set to be released by the Pakistan Bureau of Statistics (PBS) during the first week of next month (April 2022).

As per the report, Monthly Economic Update and Outlook, released by the Finance Ministry, stabilising the Real Effective Exchange would also help boost exports, keeping the rising trend.

Meanwhile, the imports would return to a level that is more in accordance with domestic economic activity and international commodity prices, it added. As a result, the balance may deteriorate slightly in March 2022. According to the released data, the geopolitical risks still persist.

The government has designed several measures to stimulate exports and discourage unnecessary imports to contribute to constraining the current account deficit.

The remittances are expected to revert to normal levels during March. It is pertinent to state that in the months of January and February, the inflows declined due to negative seasonality.

Taking several contributing factors into account, the current account deficit is set to stay well below the unsustainable levels observed in the period from Aug 2021 up to Jan 2022.

As per the report, the country’s overall economic performance would continue to be strong and is still on a trajectory compatible with the set economic growth target of around 5 percent in the ongoing fiscal year.

However, the intensity of external and internal risks has still not been exactly realised which can adversely affect domestic economic activities.

The report cited the Russia-Ukraine crisis as an important external risk factor. Likewise, domestic socio-political conditions are building domestic risks that could hamper the positive outlook of the country’s economy.

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