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Tag: trade deficit

  • Trade deficit widens to $17.3bn in July – February

    Trade deficit widens to $17.3bn in July – February

    ISLAMABAD: Pakistan’s trade deficit widened by 9 percent or $17.3 billion during first eight months (July – February) 2020/2021 of the current fiscal due to surge in import bill for the period, according to provisional data released by the ministry of commerce.

    The trade deficit widened to 17.3 billion during first eight months of the current fiscal year as compared with $15.87 billion in the same months of the last fiscal year.

    Import bill increased to $33.6 billion during the period under review as compared with $31.5 billion in the corresponding period of the last fiscal year, showing an increase of 6.6 percent.

    On the other hand, exports posted a growth of 4.2 percent to $16.3 billion during July – February 2020/2021 as compared with $15.64 billion in the same period of the last fiscal year.

    Abdul Razak Dawood, Adviser to Prime Minister of Pakistan for Commerce and Investment, in a tweet message commented that most of this growth came from increase in import of raw material and intermediate goods, which increased by 7.8 percent.

    The import of capital goods declined by 0.2 percent, while that of consumer goods decreased by 7.3 percent, he added.

    “This shows that the Make-in-Pakistan Policy of MOC is delivering dividends and industrial activity in the country is increasing. The import bill this year also increased because we had to import Wheat and Sugar to stabilize the market prices,” he said.

    Cotton was also imported to to help the Export-oriented industry so that the exports are not hampered.

    During Jul-Feb 2021, the import of Wheat amounted to USD 909 million, Sugar USD 126 million and Cotton USD 913 million (total of USD 1,948 million).

  • Remittances to remain strong for financing trade deficit: finance ministry

    Remittances to remain strong for financing trade deficit: finance ministry

    ISLAMABAD: The ministry of finance on Monday hoped the inflows of remittances to remain strong enough to support the financing of the trade deficit in coming months.

    In its monthly economic update and outlook – January 2021, the ministry said that the sudden surge in imports due to the increase in international oil prices and import of additional food products enhanced imports by $ 1.2 billion alone in December 2020 ($ 5.0 billion) compared to December 2019 ($ 3.8 billion).

    “However, there was no pressure on foreign reserves as Current Account remained in surplus for H1 FY 2021. Looking forward, depending on these explanatory factors, imports may remain $ 4.5 – $ 5.0 billion in next month,” the ministry said.

    Exports are expected to stabilize around current levels, it added.

    “But in the baseline scenario, the trade balance is not expected to further deteriorate. Remittance inflows remain strong and continue to provide strong support to the financing of the trade deficit,” the ministry said.

    The finance ministry said that Pakistan’s economy consecutively suffered from Balance of Payment (BOP) crisis and COVID-19 pandemic kept economy below its potential level.

    Since the start of current fiscal year, economy has started recovering. The government is committed to monitor external balance and its financing closely.

    Furthermore, the government has also taken policy and administrative measures to monitor the supply and market functioning wherever necessary to mitigate inflationary pressure.

    The restoration and acceleration of Pakistan’s productive capacity is a necessity to ensure a high and sustainable growth in the near and longer term. In the near future, the economic recovery is expected to translate into more productive investment expenditures.

    The government is committed to motivate investments in crucial sectors of the economy to enhance productive capacities and to stimulate economic growth.

    Fiscal performance remained satisfactory. Currently, the fiscal policy actions are primarily concentrated on relief measures to support businesses stay afloat and to protect vulnerable segments of society.

    At the same time, the government is focused on containing the fiscal deficit at a manageable level and keeping the primary balance at a sustainable level.

    According to latest fiscal numbers, healthy growth in non-tax revenues, satisfactory performance of FBR tax collection despite issuance of higher number of refunds and controlling of expenditures other than mark-up payments and COVID related would pave the way to maintain the fiscal deficit within the reasonable limits in coming months, the ministry said.

    The finance ministry said that the current outlook ensures economic revival on the basis of continued recovery seen in recent months but there is possibility of slower economic activities especially in services sector depending on the intensity and duration of pandemic.

  • Trade deficit swells by 6.44 percent in first half

    Trade deficit swells by 6.44 percent in first half

    ISLAMABAD: The country’s trade deficit has widened by 6.44 percent during the first half (July – December) of fiscal year 2020/2021 owing to uptick in imports during past two months.

    According to trade data released by Pakistan Bureau of Statistics (PBS) on Thursday, the trade deficit was recorded at $12.42 billion during July – December of fiscal year 2020/2021 as compared with the deficit of $11.67 billion in the corresponding period of the last fiscal year.

    The exports of the country witnessed a growth of five percent to $12.1 billion during the first half of the current fiscal year as compared with $11.52 billion in the corresponding half of the last fiscal year.

    Similarly, the total import bill of the country registered an increase of 5.72 percent to $24.52 billion during the first half of the current fiscal year as compared with $23.2 billion in the corresponding half of the last fiscal year.

    The trade deficit was widened sharply by 32 percent in December 2020 to $2.68 billion as compared with the deficit of $2.03 billion in the same month of 2019.

    The exports have witnessed 18.31 percent growth to $2.35 billion in December 2020 as compared with $1.99 billion in December 2019.

    Meanwhile, the import bill during December 2020 registered a growth of 25.25 percent to $5.04 billion as compared with $4.02 billion.

  • Pakistan exports goods worth $7.55 billion in four months

    Pakistan exports goods worth $7.55 billion in four months

    ISLAMABAD: Pakistan has exported goods worth $7.55 billion during the first four months (July – October) 2020/2021 as compared with $7.52 billion in the corresponding period of the last fiscal year, showing nominal increase of 0.33 percent, according to data released by Pakistan Bureau of Statistics (PBS) released on Wednesday.

    On the other hand, imports fell by 0.79 percent to $15.13 billion during the first four months of the current fiscal year as compared with $15.25 billion in the corresponding months of the last fiscal year.

    The trade deficit also contracted by 1.88 percent to $7.57 billion during the period under review as compared with the trade deficit of $7.72 billion in the same period of the last year.

    The exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

    Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

    The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

  • Import bill falls by over 10 percent in October; export witnesses 2.1 percent growth

    Import bill falls by over 10 percent in October; export witnesses 2.1 percent growth

    ISLAMABAD: The country’s import bill has witnessed decline by 10.3 percent to $4.07 billion in October 2020 as compared with $3.65 billion in the same month of the last year.

    Meanwhile, the exports have witnessed an increase of 2.1 percent to $2.06 billion in October 2020 as compared with $2.02 billion in October 2019.

    To review the current export trends, a meeting was held on Tuesday, in the Ministry of Commerce, under the Chairmanship of the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood.

    The trade deficit shrank by 22.6 percent in October 2020 to $1.587 billion, showing an improvement of $463 million over October 2019.

    The advisor was also briefed that during July-October 2020 the exports decreased only marginally by 0.1 percent. The exports during this period stood at $7.54 billion as compared to $7.547 billion during the same period last year.

    He was informed that, during July-October 2020, the balance of trade has witnessed a decline of 4.5 percent to $7.424 billion as compared to $7.776 billion last year.

    The Advisor expressed his satisfaction at the export trends and praised Pakistan’s exporters who made it possible for bringing the exports to pre-COVID-19 levels despite uncertainty and contraction in Pakistan’s major markets.

    He was also briefed on the major export product trends and was informed that during July-October 2020, the export increases were mostly in the value added sectors.

    The increases were witnessed in Home Textiles (10.0 percent), Women’s Garments (20.8 percent), Jerseys & pullovers (35.3 percent), Made-up articles of textile (10.4 percent), Stockings & socks (19.2 percent), Cement (10.8 percent), Pharmaceutical products (26.8 percent), Tarpaulins (66.8 percent), and Made-up clothing accessories (245.2 percent) as compared to the same period last year.

    He was informed that, as compared to the same period last year, the export decreases during July-October 2020 were seen in mostly the non-value added sectors such as Cotton Fabric (-8.0 percent), Cotton yarn (-40.1 percent), Worn clothing (-63.6 percent), Raw Leather (-38.4 percent), Crude Petroleum (-53.7 percent), and Cotton (-95.7 percent). The Advisor was also briefed on the geographical spread and growth of exports.

    He was informed that, as compared to the same period last year, Pakistan’s top five growing markets during July-October 2020 are Indonesia (39.3 percent), Qatar (34.5 percent), Denmark (24.9 percent), S. Korea (22.5 percent) and Afghanistan (15.6 percent).

    The Advisor expressed his hope that Pakistan economy will continue on its upward recovery trend and he directed that the officials of Ministry continue to proactively facilitate exporters and businessmen.

    He further directed that no efforts should be spared to counter the effect of the second wave of COVID-19 in Pakistan’s major markets.

  • Trade deficit increases by 2 percent in first quarter

    Trade deficit increases by 2 percent in first quarter

    Pakistan’s trade deficit has expanded by 2 percent in the first quarter (July – September) of the fiscal year 2020/2021, primarily driven by a notable increase in the import bill.

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  • Trade deficit narrows by 8.32 percent in July – August

    Trade deficit narrows by 8.32 percent in July – August

    ISLAMABAD: The trade deficit of the country has narrowed by 8.32 percent in the first two months of the current fiscal year owing to decline in import bill during the period under review.

    According to the data released by Pakistan Bureau of Statistics (PBS) on Friday, the trade deficit narrowed to $3.38 billion during July – August of 2020 as compared with $3.69 billion in the same period of the last year.

    The import bill of the country has declined by 6.28 percent to $6.96 billion during the first two months of the current fiscal year as compared with $7.43 billion in the same months of the last fiscal year.

    However, exports have also declined by 4.27 percent to $3.58 billion during the period under review as compared with $3.74 billion in July – August of 2019.

    The torrential rains and urban flooding during the last few days of August 2020 has adversely affected the supply chain, which affected the exports of the country.

    Due to this reason the exports fell by 21 percent to $1.58 billion in August 2020 when compared with $2 billion in previous month.

    In the month under review the imports have also fell by 11 percent to $3.28 billion as against $3.68 billion in July 2020.

    Meanwhile, the exports fell by 15 percent to $1.58 billion in August 2020 when compared with $1.85 billion in August 2019. On the other hand the imports fell by 12 percent to $3.28 billion as compared with $3.72 billion in August 2019.

  • Exports surge by 25 percent: PBS

    Exports surge by 25 percent: PBS

    ISLAMABAD: The exports of the country increased by 25 percent in July 2020 as compared with the previous month owing to enhance in economic activities after ease in lockdown, according to data released by Pakistan Bureau of Statistics (PBS) on Wednesday.

    The country’s exports were at $2 billion in July 2020 as compared with $1.59 billion in June 2020.

    The rise in exports may be attributed to ease in lockdown and resumption of economic activities during July 2020. The lockdown was imposed since March 2020 to prevent the spread of coronavirus.

    The import bill during July 2020 fell by 2 percent to $3.64 billion as compared with $3.72 billion in June 2020.

    The trade deficit shrank by 22.64 percent to $1.64 billion in July 2020 as compared with deficit of $2.12 billion in June 2020.

    The exports in July 2020 registered an increase of 6.04 percent when compared with $1.88 billion in July 2019.

    The import bill in July 2020 fell by 2 percent when compared with $3.7 billion in July 2019.

    The trade deficit reduced by 10.24 percent in July 2020 when compared with deficit of $1.82 billion in July 2019.

  • Trade deficit narrows by 27pc in 2019/2020

    Trade deficit narrows by 27pc in 2019/2020

    ISLAMABAD: Pakistan’s trade deficit narrowed by 27 percent to $23.18 billion in fiscal year 2019/2020 as against the deficit of $31.8 billion in the preceding fiscal year, Pakistan Bureau of Statistics (PBS) said on Friday.

    The import bill of the country significantly declined by 18.61 percent to $44.57 billion during July – June 2019/2020 as compared with $54.76 billion in the same period of the preceding year.

    The exports also fell by 6.84 percent to $21.38 billion in the fiscal year 2019/2020 as compared with $22.95 billion in the preceding fiscal year.

    The fall in import bill and export receipts may be attributed to COVID-19 which adversely affected the international trade and lower forecast the global economic growth.

  • Exports fall by 54 percent in April amid COVID-19 pandemic

    Exports fall by 54 percent in April amid COVID-19 pandemic

    ISLAMABAD: Pakistan’s exports have declined by 54 percent in April 2020 owing to ongoing lockdown and cancellation of foreign orders.

    According to trade data released by Pakistan Bureau of Statistics (PBS) the exports were at $957 million in April 2020 as compared with $2.09 billion in the same month of the last year.

    The massive decline in exports can be attributed to cancellation of foreign orders due to outbreak of coronavirus. Besides, the manufacturing activities were remained halted due to lockdown to prevent the COVID-19 pandemic.

    The existing situation also reduced the import bill in the month under review. The imports fell by 34.5 percent to $3.09 billion in April 2020 as compared with $4.714 billion in April 2019.

    The exports in first ten months (July – April) 2019/2020 also fell by four percent to $18.41 billion as compared with $19.16 billion in the corresponding period of the last fiscal year.

    On the other hand the import bill fell by 16.5 billion to $39.9 billion in the first ten months of current fiscal year as compared with $45.4 billion in the corresponding period of the last fiscal year.

    The trade deficit shrank by 25.68 percent to $19.49 billion during July – April 2019/2020 as compared with the deficit of $26.23 billion in the same period of the last fiscal year.