The government’s efforts to manage a shortage of foreign currency have led to an 18% decline in imports during the first two months of the fiscal year 2023-24. Economists and businesses are concerned about the downstream economic impacts, including supply chain disruptions. Imports, as measured by the opening of letters of credit, fell to $10.5 billion, with several key categories experiencing significant declines. Consumer goods, including cereals and edible oils, saw a 39.25% drop, while capital machinery imports fell nearly 22%, affecting production chains. Intermediate goods imports dropped almost 20%, impacting industrial production. Petroleum imports fell 22.33%, and industrial raw material imports declined by 27.64%. Dollar shortages and high inflation are cited as key reasons behind the import downturn, which may impact economic growth and job creation.
Source for more details:
