Karachi: Pakistan's exports have plunged to a four-year low of USD 23.9 billion last year, in a jolt to the government's ambitious plan to boost exports to USD 150 billion in 10 years.
The exports missed the target of 27 billion by USD 3.1 billion and are a setback for the much promoted 'Vision 2025' launched with fanfare by Prime Minister Nawaz Sharif that promises six times increase in exports in the next 10 years.
Pakistan exported goods worth USD 23.9 billion during the last financial year 2014-15, which were USD 1.3 billion or 4.9 percent less than the previous fiscal year, The Express Tribune reported today, quoting the Pakistan Bureau of Statistics (PBS).
It was also the lowest number since 2011-12 when the country had exported goods worth USD 23.6 billion.
The country's exports are falling at a time when its regional peers are increasing their shares in global trade. Pakistan's exports amount to only 0.15 percent of the global receipts from exports.
While the exports dropped by almost 5 percent, the imports in the same period grew on an average of 2.1 percent to USD 46 billion, widening the trade deficit by 10.7 percent.
The imports also exceeded the target by USD 1.9 billion.
As a result, the gap between imports and exports stood at USD 22.2 billion, which was USD 5.2 billion higher than the official estimates.
This would have a direct bearing on the official foreign currency reserves, which remained far below the International Monetary Fund (IMF)'s projections of USD 15.4 billion for the last fiscal year.
The foreign currency reserves held by the central bank stood at USD 13.5 billion by end of the last fiscal year, almost USD 2 billion less than the IMF's projections.
Since assuming office in June 2013, the incumbent government has slapped Rs 830 billion additional taxes and most of these taxes are regressive, making exports uncompetitive in international markets.
Last year, the PML-N government had launched its economic vision, the 'Vision 2025', which promises to address all the obstacles, which are pulling back economic growth.
One of the important targets of the 10-year plan is increasing the exports to USD 150 billion.
