ISLAMABAD - After failure to meet the tax collection target and controlling inflation, the incumbent government on Friday faced decline in exports by over three percent in January 2020 despite depreciating the currency and several other incentives given to exporters.  

Pakistan’s exports declined by 3.17 percent to $1.97 billion in January 2020 as compared to $2.04 billion in the same month of previous year, reveals the Pakistan Bureau of Statistics (PBS).

This was the second consecutive month when Pakistan’s exports have reduced. Earlier, exports were recorded at $1.99 billion in December, down 3.96 percent over $2.07 billion in the corresponding month last year.

The country’s exports are not showing a healthy growth despite the currency was depreciated and the government had given several other incentives to exporters.

Meanwhile, the imports have reduced by 9.63 percent to $4.04 billion in January 2020 from $4.47 billion in January 2019. The country’s trade deficit has recorded at $2.07 billion in the month of January as compared to $2.43 billion in the same month of previous year showing decline of 15.03 percent.

The incumbent government is already struggling in meeting the tax collection target and controlling the soaring inflation rate. The tax collection shortfall had swelled to Rs383 billion in seven-month period. The FBR has collected Rs2408 billion as compared to the actual target of Rs2791 billion and Rs2552 billion revised target.

Similarly, the inflation had recorded at 14.6 percent in January 2020 — scaling the highest level in 12 years.

Meanwhile, in seven months (July to January) of the current fiscal year, Pakistan’s exports have shown nominal increase of 2.14 percent and recorded at $13.5 billion as compared to $13.22 billion in the same period of previous year. However, the imports have gone down by 15.95 percent to $27.25 billion in July-January of 2019-2020 as compared to $32.42 billion. Massive reduction in imports has helped in controlling trade deficit of the country. Trade deficit has narrowed by 28.4 percent to $13.75 billion in seven months of the ongoing financial year from $19.2 billion in the corresponding period of last year.

According to the PBS data, the country’s exports have registered a negative growth of 1.15 percent in the month of January 2020 when compared with the data of its preceding month, December. The country has exported goods worth of $1.97 billion in January 2020 as compared to $1.99 billion in December 2019. Similarly, the imports have remained unchanged at January 2020 at $4.04 billion. The reduction in exports and no change in imports have resulted in increase in trade deficit by 1.13 percent during the month of January this year. Pakistan’s trade deficit has recorded at $2.067 billion in the month of January 2020 as compared to $2.044 billion in the same month of previous year.