Former Finance Minister Dr. Hafiz Pasha has warned that Pakistan may wintness External Payments pressure in FY2022 as the country witnessed largest amount of import in June this year, at $ 6.3 billion, while the current account deficit remained at $ 1.3 billion.
At the Pakistan Industrial and Traders Association Front (PIAF) Session on Pakistani Economic Problems and Solutions, he predicted that the total annual imports would reach up to $ 70 billion, which is impossible to finance with limited exports of. This requires only $25 billion and remittances of $29bn.
The former finance minister said the current account deficit will exceed $ 6.7 billion next year as the country must increase its debt service contributions by at least 35 percent, which is alarming. He praised the record $ 29.4 billion in remittances sent by Pakistanis overseas, but expressed concern that remittances would decline next year as Pakistan spends about $ 3-4 billion a year on overseas flights, which were saved this year, hence increasing remittances.
At the session, Mian Anjum Nisar, former FPCCI chairman and chairman of the business committee, asked the authorities to focus on accelerating export growth in addition to maintaining some restrictions on rampant luxury imports.
He noted that economic leaders must draw up a long-term plan to substitute imports and increase exports for Pakistan to become independent. He also stressed the need to learn from international best practices in priority areas and consult with international experts to achieve success.
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