Pakistan’s Trade Deficit Fell by 33.5% in July-October 2019

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.

 

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.

 

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


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