Imports rise as curbs ease in second half

Imports in the second half of the outgoing fiscal year increased significantly, reflecting the easing of restrictions by the State Bank of Pakistan (SBP) on the International Monetary Fund’s directions. The country’s import bill surged to $17.92bn in January-April compared to $25.462bn in July-December FY24. Currency experts said the interbank market was experiencing higher demand for dollars from importers, but the State Bank succeeded in stabilising the exchange rate at the current level. The IMF had demanded easing import curbs before reaching a Staff-Level Agreement to release the final tranche of $1.1bn under the $3bn Stand-By Arrangement. Bankers said imports rose, but restrictions are still in place to bring down the trade deficit and get control over the current account deficit. The average monthly imports rose by $244m to $4.481bn in January-April from $4.237bn in the first half.