Trade deficit widens to $37.7b

KARACHI: Pakistan’s trade deficit widened 15.9 percent to $37.7 billion during the last fiscal year of 2017/18 as imports continued to outweigh exports, official data showed on Wednesday. Pakistan Bureau of Statistics (PBS) data showed that trade deficit amounted to $32.5 billion during the preceding fiscal year of 2016/17. Exports increased 13.7 percent to $23.2 billion in the July-June period of 2017/18, while annual imports soared 15.1 percent to $60.9 billion. Exports are showing recovery on financial incentives announced by the previous government to arrest constant decline in outbound shipments. Imports are expected to cool in the coming period as Chinese-pledged infrastructure projects are reaching advance stage. In June, trade deficit expanded 46.1 percent year-on-year to $3.8 billion with exports down one percent to $1.9 billion and imports up 26.2% to $5.7 billion, PBS data showed. Trade deficit marginally increased 3.7% in June over May as exports fell 11.9% and imports dropped 2.1% month-on-month.