KARACHI: Trade deficit of Pakistan narrowed by 32 per cent during first seven months of the current fiscal year 7MFY23, according to official data released on Thursday.
The trade deficit narrowed to $19.63 billion during first seven months (July – January) of 2022-2023 as compared with $28.86 billion in the corresponding period of the last year, according to the data released by Pakistan Bureau of Statistics (PBS).
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The import bill of the country fell significantly by 22.53 per cent to $36.1 billion during July – January 2022-2023 as compared with $46.6 billion in the corresponding period of the last fiscal year.
The massive fall in import bill can be attributed to restrictions applied on imports during the period. The government in May 2022 imposed a ban on import of luxury and non-essential items, which was later lifted in August 2022.
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However, certain conditions were remained applicable regarding opening of the letter of credit (LC) for import payment.
On the other hand exports of the country also fell by 7.16 per cent to $16.47 billion during the period under review as compared with $17.74 billion in the same period of the last fiscal year.
READ MORE: Pakistan’s import restrictions help narrowing trade deficit by 27%
The exports registered a decline by 15.42 per cent to $2.21 billion in January 2023 as compared with $2.61 billion in the same month of the last year.
The import bill for the month of January 2023 also fell by 19.55 per cent to $4.86 billion as compared with $6.04 billion in the same month of the last year.
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The trade deficit in the month of January 2023 contracted by 22.71 per cent to $2.64 billion when compared with $3.42 billion in January 2022.