Country Report Pakistan April 2011

Outlook for 2011-15: External sector

Imports contracted sharply in 2009, but import growth resumed in 2010 and will remain strong in 2011-15, in line with high international oil prices and stronger demand for basic commodities and construction materials. Export growth will be weak, as even before the floods a range of structural factors was impeding Pakistan's ability to expand its overseas sales. As a result, the trade deficit will widen steadily to reach US$25bn in 2015, compared with an estimated US$11.6bn in 2010. The current-account deficit will widen in tandem, from an estimated US$2.5bn in 2010 to US$10.8bn in 2015. As a proportion of GDP, the current-account deficit will rise steadily from an estimated 1.4% in 2010 to 4.2% in 2015.

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