Pakistan's trade deficit has reached US$7 billion, says Global Economy report

LAHORE (92 News) – A report published by Global Economy says that Pakistan's trade deficit has reached to US$7 billion in November.

According to the report, the country's trade deficit is getting out of control. It could increase manifold by June 2022. "Dollars are continuously reducing in the country for paying for exports. The external debt will fulfill the deficit, but loans will increase more in this way," it added.

The report says that major amount of taxes will be spent to repay loans instead of development. The amount of Pakistani debt will increase to US$41 billion from US$ 39billion while the growth rate will reduce to 3 percent from 3.9 percent by end of 2022.

According the report, inflation and unemployement in Pakistan will increase due to rising prices of the petroleum products. It is beiing feared that six million people will be unemployed. Approximately 40% of population in Pakistan lives under the line of poverty. The inflation rate in Pakistan is 12.03 percent. There are not chances of an immediate decline in inflation. The increase in the interest rate will further increase the cost of business.