Trade Deficit Reduces by 11% in First 8 Months of FY19

The trade deficit of the country continues to show positive signs with each passing month as it has reduced by 11 percent in the eight months of the current financial year 2018-19 compared with the similar period of the previous financial year.

According to Pakistan Bureau of Statistics, the trade deficit reduced by $2.66 billion during the period of July to February due to the growth in exports and a decrease in the value of imports bill.

Overall, the trade deficit decreased to $21.5 billion in the eight months of FY19 as against of $24.191 billion recorded in the same period of the financial year 2017-18.

The exports receipts of the country showed a slight growth of 1.85 percent or $275 million during the said period. It increased to $15.11 billion in the eight months of FY19 as compared with $14.83 billion recorded in the last financial year.

Further, a marked improvement was seen on the imports side which reduced significantly by over 6% or $2.3 billion in the eight months of FY19 to stand at $36.6 billion. The imports bill stood at $39 billion in the same period of FY18.

The incumbent government took several measures to control the imports of various products, especially luxuries items, with policies or through increasing regulatory duties on various items. This gradually caused the declining trend in imports in the current financial year.

The reduction of trade deficit will further translate its positive impact on the balance of payment situation. Besides, the foreign exchange reserves are set to increase to more than $19 billion in months to come. On the other hand, Rupee is likely to improve its standing against Dollar.

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