ISLAMABAD: Pakistan’s trade deficit contracted by 33 per cent to $21.3 billion during first eight months (July – February) of fiscal year 2022-2023, according to official numbers released on Friday.
The fiscal deficit of the country was $31.88 billion during the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).
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Interestingly, both exports and imports have recorded decline during the period under review.
Exports have decreased by 8.65 per cent to $18.79 billion during first eight months of the current fiscal year when compared with $20.57 billion in the corresponding period of the last fiscal year.
Likewise, imports recorded 23.56 per cent to $40.1 billion during the period under review when compared with $52.45 billion in the same months of the last fiscal year.
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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.
However, certain conditions were remained applicable regarding opening of the letter of credit (LC) for import payment.
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The exports of the country fell by 18.67 per cent to $2.3 billion in the month of February 2023 when compared with $2.83 billion in the same month of the last year.
Similarly, the imports slipped by 31.51 per cent to $4 billion in the month of February 2023 when compared with $5.85 billion in the same month of the last year.
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However, trade deficit narrowed by 43.56 per cent to $1.7 billion in February 2023 when compared with the deficit of $3.02 billion in the same month of the last year.
