Merchandise trade deficit shrinks by 26.6pc in 4MFY23

ISLAMABAD: Pakistan’s merchandised trade deficit in the first four months of FY2022-23 shrank by 26.6 per cent to $11.47 billion against $15.62 billion in the same period of the last fiscal, thanks to the government’s policies for curtailing unnecessary imports to muzzle this ballooning imbalance, which is disturbing the economy for the last several years.

Imports in July-Oct 2022-23 shrank by 16.2 percent to $21.02 billion from $25.1 billion in the same period last year; however, the exports edged up 0.94 percent to $9.55 billion against $9.46 billion in the same period last year.

Pakistan imported nearly 27.2 percent fewer goods in October 2022 and sold 3.77 percent less products abroad compared to the corresponding month of the last fiscal, according to Pakistan Bureau of Statistics (PBS) data. Exports in October 2022 were down by 3.77 percent to $2.37 billion from $2.464 billion in the same month a year ago, while imports dropped from 27.2 percent to $4.636 billion from $6.37 billion in October 2021.

In October, the trade deficit was reduced by 42 percent to $2.265 billion, which is a 23-month low. The deficit was $3.91 billion in the same month last year. Comparing monthly trade performance with the previous month (September), goods exports in October 2022 fell 3.1 percent from $2.45 billion in the previous month, while imports slumped 13.3 percent compared to September imports of $5.35 billion.

However, it is encouraging to note that imports have been trending downwards since the start of this fiscal year as in July imports contracted 10.4 percent, in August 7.7 percent, in September 19.7 percent and now in October they decreased 27.2 percent over their respective corresponding months of last year, the statistical office’s trade bulletin revealed.