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Import Spike in July and August Driven by Strong GDP Growth: Finance Minister

The Federal Minister for Finance and Revenue, Shaukat Tarin, said that Pakistan’s recent spike in imports was driven by economic growth.

Tarin presided over a meeting today at the Finance Division to review the country’s trade balance situation.

The Secretary of Commerce briefed participants about the trade balance situation over the last two months. He said that the expansion in economic activity, increased demand for raw materials, and the import of one-time items like COVID-19 vaccines led to rising imports during July and August.

The Finance Minister added that the economy registered a growth rate of 4 percent during FY 2021, which is why there is an increased demand for imports. He added that as long as the trade deficit is within a sustainable level, it will stimulate economic recovery.

The minister directed the Ministry of Commerce to conduct sensitivity analysis and build scenarios for effective forecasting, both in imports and exports for each month of the year.

In his concluding remarks, the minister said that prudent policies adopted by the present government have stimulated economic recovery amid the COVID-19 pandemic and that the economy is heading in the right direction. Enhanced revenue collection along with improved ratings by indices like the Business Confidence Index and by international credit rating agencies indicate that the economy is gaining momentum and is geared towards inclusive and sustainable economic growth.

Federal Minister for Economic Affairs Division, Omar Ayub Khan, Secretary of Commerce, Secretary of the Ministry of Information Technology, Secretary Finance Division, Governor State Bank of Pakistan, Dr. Reza Baqir, Executive Director General Board of Investment, Adviser for Commerce, Abdul Razak Dawood, and other senior officials participated in the meeting.

Source: Pro Pakistani

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