ISLAMABAD-Pakistan’s trade deficit has narrowed by 30.14 percent to $14.41 billion in first five months (July to November) of the ongoing financial year.
The country’s trade imbalance, gap between exports and imports, was recorded at $14.41 billion in July to November period of the year 2022-23 as compared to $20.621 billion, according to the latest data of Pakistan Bureau of Statistics (PBS). Exports and imports both have reduced in the period under review. Pakistan’s exports have declined by 3.48 percent to $11.932 billion from $12.362 billion. On the other hand, imports have also fallen by 20.15 percent to $26.338 billion July to November period of the current fiscal year.
According to the PBS, the country’s trade deficit has shrunk by 42.46 percent to $2.876 billion in November from $4.998 billion in the same period of the last year. Meanwhile, exports have declined 18.34 percent to $2.369 billion in November from $2.901 billion in November previous year. Similarly, imports have reduced by 33.6 percent to $5.245 billion in November 2022 from $7.899 billion. The ministry of finance has projected that improvement in trade balance is expected in November. It noted that imports have roughly stabilized at relatively low levels during the first four months of FY23. The soothed international oil prices, stable exchange rate, and contained domestic demand are contributing to the decline in imports. Given these recent dynamics and under unchanged policy assumptions, imports would remain at around current low levels during the coming months. On the export side, sluggish foreign demand, and domestic supply issues, following the floods-induced destruction of exportable crops are responsible for the weak export performance. However, in the coming months, it is expected that exports will improve on account of targeted policies announced recently by the government to stimulate exports. But these dynamics may be hindered if the economic conditions in the main export markets remained volatile and uncertain. As a result, the trade balance in goods and services has marginally improved.
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