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Tag: trade deficit

  • Trade deficit narrows by 15.33pc to $31.82 billion in 2018/2019

    Trade deficit narrows by 15.33pc to $31.82 billion in 2018/2019

    ISLAMABAD: The country’s trade deficit has narrowed by 15.33 percent during fiscal year 2018/2019 owing to decline in import bill, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The trade deficit declined to $31.82 billion in last fiscal year as compared with $37.58 billion in the preceding fiscal year.

    The decline in trade deficit can be attributed to 10 percent decline in total import bill. The imports declined to $54.79 billion during fiscal year 2018/2019 as compared with $60.79 billion in the preceding fiscal year.

    However, exports failed to exhibited growth despite several incentives announced by the government in the past.

    The exports fell by one percent to $22.97 billion during the last fiscal year as compared with $23.21 billion in the preceding fiscal year.

    In the month of June 2019 the exports fell sharply by 18.32 percent comparing the previous month. The exports were $1.71 billion in June 2019 as $2.1 billion in the month of May 2019.

    On the other hand imports also fell by 13.45 percent during the month under review. The imports were at $4.36 billion in June 2019 as compared with $5.04 billion in the month of May 2019.

    Analysts said that the decline in both imports and exports were due to budgetary measures announced in the month of June 2019.

    They said that the government had taken very harsh measures to generate revenue for the fiscal year 2019/2020. The elimination of zero-rate of sales tax negatively impacted the exports. On the other hand the rise in import duties and taxes also discouraged the foreign purchases.

    The analysts further said that the fall in rupee value also another major reason for decline in both exports and imports during the month of June 2019.

  • Trade deficit narrows by 13.62 percent in eleven months

    Trade deficit narrows by 13.62 percent in eleven months

    ISLAMABAD: The trade deficit has narrowed by 13.62 percent in first eleven months owing to measures taken by the government to increase the cost of imported luxury and non-essential goods.

    According to trade data released by Pakistan Bureau of Statistics (PBS) on Tuesday, the trade deficit reduced to $29.2 billion during July – May 2018/2019 as compared with the deficit of $33.81 billion in the corresponding period of the last fiscal year.

    Primary reason for shrinking trade deficit is reduction in import bill. The total imports fell by 8.47 percent to $50.47 billion during first eleven months of current fiscal year as compared with $55.14 billion in the same period of the last fiscal year.

    The government during the last couple of years has taken measures to discourage import of luxury and non-essential goods by imposing regulatory duty.

    However, exports were remained flat at $21.26 billion during July – May 2018/2019 as compared with $21.33 billion in the corresponding period of the last fiscal year.

    It is pertinent to mention here that the government had also extended many facilitations to jack up the exports but despite enjoying relaxations on many heads the Pakistani exporters failed to capture world market.

  • Pakistan’s trade deficit narrows by 13pc in 10 months

    Pakistan’s trade deficit narrows by 13pc in 10 months

    KARACHI: Pakistan’s trade deficit has narrowed by 13 percent during first 10 months (July – April) 2018/2019 owing to significant fall in import bill, according to trade data released by Pakistan Bureau of Statistics (PBS) on Wednesday.

    The trade deficit narrowed to $26.3 billion during July – April of current fiscal year as compared with the deficit of $30.17 billion in the same period of the last fiscal year.

    The major reason behind shrinking trade deficit was reduction in import bill. The import bill was declined to $45.47 billion during first 10 months of current fiscal year when compared with $49.36 billion in the corresponding period of the last fiscal year.

    The exports of the country, however, remained stagnant. The exports were at $19.17 billion during July – April 2018/2019 as compared with $19.19 billion in the same period of the last fiscal year.

    The State Bank of Pakistan (SBP) in its third quarterly report said that most of the deficit reduction during Jul-Mar FY19 was recorded in Q3, when imports dropped quite sharply in response to a deepening decline in purchases of foreign power generation machinery, aircraft and railway locomotives; technical and administrative hiccups in LNG imports (and power generation); and a temporary softening in global oil prices.

    Further support came from regulatory and macro stabilization measures taken earlier, which impacted industrial performance and reduced demand for imported raw materials (such as iron and steel), and also curtailed consumers’ demand for cars (thereby lowering imports of CBUs).

    In percentage terms, the 18.1 percent decline in the overall imports in Q3-FY19 was the largest drop in a quarter in almost 10 years. It was more than sufficient to offset a 3.3 percent contraction in exports in the quarter, and led the trade deficit to drop by a sizable 27.6 percent

  • Trade deficit contracts by 13.02 percent to $23.67 billion in nine months

    Trade deficit contracts by 13.02 percent to $23.67 billion in nine months

    ISLAMABAD: Pakistan’s trade deficit has contracted by 13.02 percent during first nine months (July – March) 2018/2019 due to significant decline in import bill in the same period, according to trade data released by Pakistan Bureau of Statistics (PBS) on Wednesday.

    The trade deficit shrank to $23.67 billion during first nine months of current fiscal year as compared with the deficit of $27.21 billion in the corresponding period of the last fiscal year.

    The import bill during the first nine months was declined by 8 percent to $40.75 billion as compared with $44.28 billion in the same period of the last fiscal year.

    Experts said that the imposition of regulatory duty on luxury and non-essential items during the last budget and followed in the supplementary budget helped in curtailing import growth.

    However, growth in exports was remained flat. The exports were at $17.08 billion during the period under review as compared with $17.06 billion in the same period of the last fiscal year.

    The import bill sharply declined by 21 percent in the month of March 2019 to $4.15 billion as compared with $5.25 billion in the same month of the last fiscal year.

    On the other hand the exports also fell by 11.13 percent in the month under review. The exports exhibited decline of 11.13 percent decline to $1.98 billion in March 2019 as compared with $2.28 billion in the same month of last year.

    The reduction in import bill in March 2019 resulted in narrowed trade deficit for the month. The trade deficit was contracted by 28.07 percent to $2.17 billion in March 2019 as compared with $3.02 billion in March 2018.

  • Trade deficit narrows by 11 percent in eight months

    Trade deficit narrows by 11 percent in eight months

    ISLAMABAD: The trade deficit has narrowed by 11 percent during first eight months of current fiscal year owing decline in import bill, Pakistan Bureau of Statistics (PBS) said on Tuesday.

    The trade deficit shrank to $21.52 billion during July – February 2018/2019 as compared with the deficit of $24.19 billion in the corresponding period of the last fiscal year.

    The import bill of the country was declined by 6.13 percent to $36.63 billion during first eight months of current fiscal year as compared with $39.03 billion in the same period of the last fiscal year.

    However, exports posted growth of 2 percent to $15.11 billion during the period under review as compared with $14.83 billion in the corresponding period of the last fiscal year.

    Experts said that the import bill of the country declined owing to several restrictions imposed by the government including condition of advance payment and regulatory duty on luxury and non-essential items.

    On the other side exports failed to reflect the incentives granted to manufacturing and export sector by the government.

    The trade deficit reduced sharply in February 2019 to $2.29 billion from the deficit of $2.86 billion in February 2018, showing decline of 20.12 percent.

    In the same period imports fell by 12.26 percent to $4.18 billion as compared with $4.76 billion in February 2018.

    The export growth was flat during the month to $1.88 billion as compared with $1.89 billion.


    Related Stories: Pakistan’s import bill declines by 19.14pc in January

  • RD regime brings down import by 23pc

    RD regime brings down import by 23pc

    ISLAMABAD – Recent regulatory duties (RD) imposed on luxury and non-essential items have significantly reduced imports in Pakistan, with a decline of 23 percent observed in December 2018.

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