ISLAMABAD: The country’s trade deficit narrowed by 30.14 percent to $14.4 billion in the first five months of the current fiscal year 2022-23 due to a fall in non-essential imports, JEE News reported on Friday.
According to the Pakistan Bureau of Statistics (PBS) monthly trade bulletin, imports fell by 20.15 percent to $26.34 billion during the July-November period from $32.98 billion in the same period last year.
However, exports also fell 3.5 percent to $11.93 billion in the same period from $12.36 billion in the same period last year, PBS said on Thursday.
Compared to November 2021, Pakistan imported 33.6 percent fewer goods and sold 18.3 percent fewer products abroad in November 2022. In November 2022, exports fell 18.34 percent to $2.37 billion from $2.9 billion in the same month in 2021, while imports fell 33.6 percent. $7.9 billion to $5.245 billion in November 2021.
The trade deficit narrowed by 42.46 percent to $2.88 billion from $4.99 billion in the same month last year.
Since the beginning of the current fiscal year, the import bill has seen a downward trend as imports decreased by 10.4 percent in July, 7.7 percent in August, 19.7 percent in September, 27.2 percent in October and 33.6 percent in November. month of 2021, PBS Business Bulletin revealed.
Comparing the monthly trade performance with the previous month (October), exports of goods in November 2022 decreased by 0.63% from $2.38 billion in the previous month, while imports increased by 11.34% compared to $4.7 billion in October.
Experts have predicted that the export bill may not touch the $29 billion mark in 2022-23. Average monthly exports in the first five months of the fiscal year are $2.386 billion. Export growth has been affected by domestic constraints and slowdown in global economies. Economic policies such as expensive bank financing, rupee depreciation, and political instability along with high input costs have contributed to the decline in exports.
It is noteworthy that in the last fiscal year 2021-22, the economy accumulated a record high trade deficit of $48.38 billion, recording a 31 percent increase over the fiscal year 2020-21.
Trade in services
PBS also released economic performance data on trade in services with other countries. The services trade deficit narrowed 38 percent to $812 million in the first four months of the fiscal year from $1.31 billion a year ago. From July to October, services exports rose 3.97 percent to $2.26 billion and imports fell 11.8 percent to $3.1 billion.
Services exports rose 1.14 percent to $559 million in October 2022, while imports fell 26 percent to $730 million in October 2021, compared to exports of $553 million and imports of $986 million. Year-on-year, the services trade deficit narrowed by 60.55 percent to $171 million. October 2022 compared to $433 million in October 2021.
Exports of services fell by 2.1 percent and imports by 1 percent compared to the previous month, PBS data showed. In September 2022, Pakistan earned $571 million by selling its services abroad, while local businesses received $737 million in services from overseas service providers, leaving a deficit of $166 million.
