18% decrease in petrol import, $13.7b decrease in textile export, bank loans to private sector stopped
Economists say due to bad economic policies of PDM government, economy has fallen into a state of chaos, until political stability, economic stability seems impossible
Pakistan Democratic Movement (PDM) government has crippled economy for a year, with net bank lending reported to have fallen by 90 percent in past 10 months, textile exports falling to $13.7 billion, while Imports of petroleum products have decreased by about 18 percent.
Significant reduction in banking loans
According to the report of the English daily Dawn News, during the first 10 months of the current financial year, the net lending by banks to the private sector fell by 90 percent, which is a clear indication of the economic slowdown.
According to Dawn News, against the backdrop of hyperinflation and record high interest rates, banks are reluctant to take on the risk of lending to the private sector, while traders and investors continue to do business despite endless political and economic uncertainty. Struggling to run.
Banks are happily investing their capital in State Bank after the PDM government hiked the interest rate to 22% as they are getting a good margin without any fear.
The latest data released by the State Bank of Pakistan shows that during the first ten months of the financial year 2022-23, the amount of credit received by the private sector fell to Rs 129.6 billion as against Rs 1,296 billion in the same period of the previous financial year. was
Backbone of textile sector
Pakistan’s textile sector has suffered a major crash due to the worst economic policies of the PDM government, Pakistan’s textile exports fell by 14.22% to $13.7 billion in the first 10 months of the current fiscal year. .
According to the statistics released by the Pakistan Bureau of Statistics (PBS), the main reason for the decline in exports is the unsustainable increase in cost.
According to April export data, textile exports have decreased by 29.11%. That is, textile exports fell by $1.73 billion in the month of April, while textile exports fell by $1.23 billion in this month of last fiscal.
The government faces an uphill battle to meet its export targets, which could further strain the country’s dwindling foreign exchange reserves. The textile and apparel sector, a key contributor to exports, is facing many challenges.
Rising energy costs, delays in remittances, shortage of raw materials, and devaluation of the local currency have led to a decline in global demand for Pakistani textiles, leading to a decline in the country’s economic stability. Serious threats have been posed.
Reduction in consumption of petroleum products
On the other hand, according to the statistics released by the Pakistan Bureau of Statistics, there has been a significant decrease of 17.96% in the imports of petroleum products during the first ten months of the current fiscal year 2023 compared to last year.
Economists attribute this to a sharp decline in consumption. He says that the domestic economy is under pressure due to abnormal inflation, while the fuel prices in the country have also increased significantly.
Experts say that the shutdown of manufacturing industries has significantly reduced the consumption of petroleum products, which has worsened the overall situation.
According to the data released by the Pakistan Bureau of Statistics, the total import value of petroleum products has reached $13.97 billion in the first 10 months of FY23 compared to $17.03 billion in the same period of the previous fiscal year.
Data compiled by PBS shows that in the first ten months of fiscal year 2023, imports of petroleum products fell by a slight 28.07 percent while consumption fell by 38.18 percent. The import volume of crude oil decreased by 14.88% while the value decreased by 1.98%.
According to the data of Pakistan Bureau of Statistics, the total imports of petroleum products decreased by 59.91% to 891.46 million dollars in the month of April, which was 2.22 billion dollars in the same month last year.
Commenting on this whole situation, economists say that the economy has fallen into a state of chaos due to the bad economic policies of the PDM government, economic stability seems impossible until political stability.
