Government’s economic decisions have finally begun to bear fruit as Pakistan’s trade deficit has gone down by 9.66 percent to $19.26 billion in the first seven months of the current fiscal year.
According to the data released by the Pakistan Bureau of Statistics (PBS), the trade deficit of the country in the July-January period of the last fiscal year was $21.324 billion– which has now narrowed down by almost 10 percent to $19.264 billion during the same period this fiscal year.
Ever since the Pakistan Tehrik-e-Insaf (PTI) government took over, the exports of the country have shown an upward trend. During this period, Pakistan’s exports rose 2.24 percent to $13.231 billion while the imports have decreased.
According to the PBS stats, the imports have declined by 5.17% to $32.49 billion from $34.27 billion in the first seven months of the current fiscal year.
Ministry of Commerce has said in a statement that its intervention to control the fast-widening trade deficit has started delivering positive results.
The numbers released from the Ministry of Commerce suggest that in the first month of 2019 alone, the trade deficit plunged by $1.14 billion- imports declined by $1.07 billion – a sharp 19 percent drop – while exports also rose by 4 percent.
Causes of Import Decline
The government had to take several measures to bring down the imports of the country which are as follows:
- Increased regulatory duties on non-essential items
- Currency Devaluation
- Improved energy supply
- Restriction on the import of furnace oil