At a time when the government has set targets of $35 billion for exports by 2018, and commodity prices globally are bouncing back, exports have fallen by 12 percent in FY16 reaching $20.8 billion against $23.6 billion in FY15. This fall coupled with the increase in non-oil imports (9 percent) especially with an up tick in machinery and industrial item imports is pressing down hard on the current account.
Indo Pak trade could be like the child that gets caught in an ugly divorce, and won't get a break. Political tensions for the most part have dictated the direction trade would take between the two countries, and other times, political factors have pressured Pakistani government to announce that it would grant MFN (or NDMA) to India and get rid of the negative list. Ultimately that didn't happen, and it would not have helped either since the question of free trade between the two countries no longer comes down to this single issue.
The coup in Turkey has fallen through but the global markets are still doubtful over Turkey's immediate future. Questions were raised as early as Saturday when judges and military personnel were being rounded up. It seemed like a list was prepared beforehand as action against those allegedly involved started within few hours. Erdogan had straight away blamed Fethullah Gullen for this uprising but not everyone was convinced. A poll carried out by Streetbees in Turkey had interesting results with around 30 percent respondents stating that Erdogan himself was behind the coup.
With June 2016 numbers from the central bank, foreign direct investment in Pakistan stood at $1,281 million for FY16, higher by 39 percent year-on-year. While at first it might look like a fillip of hope, take a look at FDI in the last four fiscal years since the current government has taken the office; the net inflows in FY16 might have increased over last year, but FY16 FDI is still 25 percent and 12 percent lower than what the country could fetch in FY14 and FY13, respectively.
The divided textile industry of Pakistan is making noise again; the value-added associations of the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and Pakistan Apparel Forum (PAF) have issued statements demanding the removal of 10 percent regulatory duty (RD) on yarn imports. Evidently, domestic yarn prices have increased, and the PRGMEA seems to be blaming the spinners lobby, All Pakistan Textile Mills Association (APTMA).