For the first time in fifteen years, exports are rising with imports decreasing simultaneously.
Pakistan’s trade deficit over the first four months of the fiscal year 2019-20 decreased significantly by 33.5%, according to a report by the Ministry of Commerce. The government’s battle against the trade deficit is finally bearing fruit, as the trade deficit went down for the fourth month in a row.
The trade deficit fell to $7.8 billion during July-October of FY19-20 as compared to $11.70 billion during the same period last year.
Abdul Razak Dawood, Advisor to Prime Minister for Commerce, Textile, Industry, and Production said that trade stats for Jul-Oct 2019 indicate that annual trade deficit may decrease by $12 billion to $19 billion (from $31 billion) in 2019-20.
”With this, coupled with workers remittances, will positively address our Current Account Deficit woes,” he added.
https://twitter.com/razak_dawood/status/1190343175950483461
The decrease in trade deficit can largely be attributed to a fall in imports, which recorded a decline of 19.3%. Imports during July-October 2019 were reported at $15.3 billion as compared to $19 billion recorded last year.
Pakistan’s exports in July-October witnessed a meager growth of 3.6% to $7.5 billion as compared to $7.26 billion in 2018.
During the month of October, the trade deficit fell by 32% to $1.97 billion as compared to last year’s $2.9 billion. Pakistan’s imports during October 2019 witnessed a reduction of 17% and came down to $3.98 billion from $4.80 billion.
https://twitter.com/razak_dawood/status/1190342644255350784
Exports in October of the current fiscal year increased by 6% to $2.00 billion as compared to $1.89 billion last year.
This also includes reduction of imports of raw materials too,, which will be alarming in the next few years. Lesser raw materials means lesser production and lesser exports,,
Mainly it’s driven by reduction in petroleum products which is beyond govt control
The fiscal deficit , which is primary responsibility of government is sky rocketing