Islamabad: (RightNow) Pakistan’s trade deficit has increased by 18% to $7.1 billion in the first two months of the current fiscal year. The primary reason is the rise in imports, which have doubled compared to exports.

The Pakistan Bureau of Statistics reports that this gap widened by $1.1 billion or 18% in July and August. During this period, imports reached $12.6 billion, which is 13% higher than last year.

The government has secured a $3 billion loan from the global capital market, which is double the trade deficit. This loan carries an interest rate between 7.9% and 8.25%.

It is important to note that the stagnation in exports is due to the strength of the Pakistani rupee, affecting export competitiveness. Exporters have pointed out difficulties despite government incentives.

The World Bank had predicted a 14% increase in exports with the new tariff policy, but the pace of import growth has doubled in the first year.