ISLAMABAD - Pakistan’s trade deficit has swelled by 30.56 per cent in eleven months of the current fiscal year mainly due to massive increase in imports as compared to the exports.
The trade deficit has recorded at $27.488 billion in July to May period of the year 2020-21 as against $21.054 billion in the corresponding period of the last year, according to the latest data of Pakistan Bureau of Statistics (PBS). The country’s imports have exceeded the pace of the exports, which resulted in massive increase in trade deficit of the country.
Imports have recorded an increase of 22.52 per cent. The country has imported goods worth of $50.048 billion in July-May period of the year 2020-21 as compared to $40.849 billion. On the other hand, exports have enhanced by 13.97 per cent to $22.560 billion in July to May period of the current fiscal year from $19.795 billion of the last year.
According to the PBS, trade deficit has increased to 149.49 per cent and recorded at $3.645 billion in May 2021 from $1.461 billion May 2020. Imports stood at $5.299 billion in first eleven months of the ongoing fiscal year as compared to $2.857 billion in same period of last year showing increase of 85.47 per cent. Meanwhile, exports have shown increase of 18.48 and recorded at $1.654 billion.
A consultative meeting was held by the Advisor to Prime Minister on Commerce and Investment, Abdul Razaq Dawood to review the trade trends at the Ministry of Commerce in last week. He was informed that according to the provisional (PRE-PBS) figures; monthly exports in May 2021 have been on the higher side compared to May 2020. As a result, the exports in May increased to $1.657 billion compared to $1.396 billion in May 2021. This shows an increase of 18.7 per cent.
He was further informed that since there was an extended Eid holiday to control the spike of corona virus which also affected the overall exports in May.
The Advisor was informed that geographically, in May 2021 top exports’ destination are USA, China, UK, Afghanistan, Bangladesh, Australia, Sri Lanka, and Kazakhstan. He was also informed that imports in May 2021, grew to $ 2.863 billion which has mainly been due to increased imports of petroleum, palm oil, wheat, soybean, machinery, raw material & chemicals, fertilizers, and synthetic filament yarn.
Dawood paid rich tributes to Pakistan’s exporters for this performance during difficult times despite the Covid-19 rise in May and contraction in Pakistan’s major markets and the difficulties created by the recent upsurge of Covid-19.