Govt, SBP to provide additional Rs300bn in subsidized financing to exporters: Hafeez Sheikh

• Finance advisor Hafeez Sheikh said Rs30bn will be given in cash instead of promissory notes issued against tax refunds.
• The development comes amid the rise of exports of goods and services by 9.6 percent in October.

Advisor to Prime Minister on Finance and Revenue Abdul Hafeez Sheikh has said that the government, alongside the central bank, will give additional Rs300 billion in subsidized financing to exporters, in order to provide easy working capital & funds for expansion.

The advisor further said in a tweet that Rs30bn will be given in cash instead of promissory notes issued against tax refunds. The development comes amid exports of goods and services rose by 9.6 percent in October.

Exports of Goods & Services increased by 9.6% in Oct 2019. To provide easy working capital & funds for expansion, Govt & SBP will give additional Rs 300B in subsidised financing to exporters & Rs 30B will be given in cash instead of promissory notes issued against tax refunds.

— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) 19 November 2019

Meanwhile, the country's trade deficit during the first four months of the ongoing fiscal year 2019-20 has recorded a decline of 33.52 percent as compared to the first four months of the past fiscal year 2018-19.

According to the latest data of advance releases on foreign trade statistics released by the Pakistan Bureau of Statistics (PBS), the trade deficit during July-October 2019-20 was recorded at $7.776 billion against the deficit of $11.696 billion during July-October 2018-19.

The exports during the four month period increased from $7.270 billion during last year to $7.547 billion during the current fiscal year, showing a growth of 3.81 percent.

On the other hand, imports during the four month period witnessed a decline of 19.21 percent by falling from $18.966 billion last year to $15.323 billion during the current fiscal year, the data revealed.