Pakistan’s trade deficit saw a decline of 35%, as it shrank to $5.72 billion from $8.79 billion in the first quarter of this fiscal year (July-September). There was a decrease of $3.06 billion in the trade deficit and almost all of it came from falling imports.
Pakistan Bureau of Statistics (PBS) released the trade figures on Friday.
The government’s battle against the trade deficit is finally bearing fruit, as the trade deficit contracted for the third month in a row.
According to PBS, Pakistan’s exports in September 2019 witnessed a growth of 2.67% to $1.76 billion as compared to $1.72 billion of September 2018, likely due to the depreciation of Rupee against the US dollar.
Pakistan’s imports during September 2019 witnessed a reduction of 13.90% and came down to $3.78 billion from $4.39 billion. During this period, the country’s trade deficit was reduced by 24.58% to $2.016 billion to $2.673 billion in the same period last year, according to the export and import data from the bureau.
On quarterly basis from July 2019 to September, the country’s exports registered a growth of 2.75% from $5.374 billion to $5.522 billion. The imports, meanwhile, fell to $11.249 billion in July-September 2019 in contrast with $14.165 billion during the same period last year.
According to PBS, on month-on-month (MoM) basis, Pakistani exports in September 2019 against August 2019 witnessed a reduction of 5% percent as they were $1.769 billion compared to $1.862 billion in August 2018.
On the other hand, Pakistan’s imports registered a growth of 1.42% from $3.732 billion to $3.785 billion. The trade deficit during the period witnessed a growth of 7.81% to $2.016 billion from $1.870 billion.
In a tweet, Adviser to PM on Finance Hafeez Shaikh said that because of the stabilization, trade and tax measures, the government has achieved the desired results.
As a result of the stabilisation measures, trade and tax reforms initiated by the Govt, we have achieved real progress last year to create a platform for sustainable development.pic.twitter.com/WIdnfOjq97
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) October 11, 2019