The trade deficit is said to be posing a serious threat to external balance of payment In July-May, the overall import bill rose 20.6 per cent year-on-year to $48.54 billion. In May alone, it increased 28 per cent to $5.09 billion.In the year 2012-13, the import bill was at $44.950 billion. It is expected to reach over $53 billion this fiscal year.Exports fell 11 per cent year-on-year to $1.627 billion in May after witnessing paltry growths in the previous two months. To boost exports, the prime minister announced a subsidy package of Rs180 billion for textile, clothing, sports, surgical, leather and carpet sectors. The impact of this package on exports has yet to be seen.The government has recently removed the commerce secretary, Azmat Ali Ranjha, for failing to promptly implement the trade policy.

Source: Economic Times June 13, 2017 08:37 UTC