New Delhi, May 12 (IANS) The global fuel price shock has shattered Pakistan because of the country’s heavy reliance on imported energy and its weak balance-of-payments position, taking its monthly trade deficit ballooned to $4.07 billion in April, according to a new report.
The April figures are Pakistan’s highest level since June 2022, further straining the fragile economy, reports Dawn.
The massive 43.5 per cent month-on-month jump in the trade gap “was anticipated due to energy supply disruptions due to the Middle East conflict, sending oil and gas prices skyrocketing”.
According to the report, the oil import bill has nearly tripled.
“This single data point explains much of the $1.45 billion month-on-month expansion in the total import bill, which climbed from $5.10 billion in March to $6.55 billion in April, a 28.41 per cent surge that no demand-management toolkit could have contained,” the report mentioned.
The export side offered little to offset the increase in the import bill.
“Going forward, there is little basis for optimism. Energy shortages are expected to persist, and with the Middle East conflict showing no signs of resolution, fuel prices are likely to remain elevated,” the report noted.
It added that Pakistan’s textile-heavy, capacity-constrained export base will be unable to respond to the crisis.
Meanwhile, Pakistan’s exports in the first three quarters of FY26 reached Rs6.39 trillion, a 7.14 pr cent decline in rupee terms compared to the previous year, widening the trade deficit to new heights.
A slump in economic growth amid the adverse regional situation is set to impact balance of payments as the fiscal year comes to an end.
In more trouble, the equity market has also witnessed massive outflows amid closure of several multinational firms. Pakistan’s total annual imports were on the rise driven by purchases for fuels, electrical equipment and edible oils.
--IANS
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