๐ฃ๐ฎ๐ธ๐ถ๐๐๐ฎ๐ป ๐ง๐ฟ๐ฎ๐ฑ๐ฒ ๐๐ฒ๐ณ๐ถ๐ฐ๐ถ๐ ๐๐ถ๐๐ $๐ฏ๐ฑ ๐๐ถ๐น๐น๐ถ๐ผ๐ป ๐ฎ๐ ๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ฒ๐ ๐ฅ๐ถ๐๐ฒ
Pakistan's trade deficit for the first 11 months of FY26 reached $35 billion. Economists expect the sharp rise in imports to reverse last year's current account surplus of $1.8 billion.
Foreign exchange reserves grew by $43 million to $17.2 billion during the week ended May 29. The State Bank of Pakistan nears its $18 billion target.
Total foreign exchange reserves stood at $22.63 billion at the end of May. Commercial banks hold $5.44 billion of that amount.
The import bill climbed to $62.66 billion. Higher purchases of luxury goods and foodgrains drove the increase.
Financial analysts told The Dawn newspaper the rise in reserves hides serious weaknesses in the economy. They pointed to the trade balance and foreign debt repayments due in June as major risks.
Saudi Arabia deposited $3 billion with the central bank earlier this year. It also extended an existing $5 billion deposit facility for three more years.
Pakistan repaid $3.45 billion to the United Arab Emirates in April. The UAE declined to extend the deposit arrangement.
Currency expert Atif Ahmed warned the managed exchange rate will face strain after June. Large external payments are due before the fiscal year ends on June 30.
The US dollar has strengthened against other regional currencies. The Pakistani rupee continues to lose value.
The central bank buys dollars from the interbank market. Ahmed said these purchases have limited effect on pricing because the central bank sets the rate.
Economists called the $35 billion trade deficit alarming. They expect it to push the current account deficit to an unexpected level and force the rupee to weaken against the US dollar.
Remittance inflows are also a concern. Currency dealers said Pakistan will find it hard to meet its FY26 target of $41 billion. More than half of all remittances come from West Asia.
Economic managers face a difficult FY27 if the trade deficit stays high and the current account returns to deficit.
Source: The Times of India