Islamabad August 3 2022: Pakistan trade deficit plunged 46.76 percent during the month of July to USD 2,642 million, according to data released by Pakistan Bureau of Statistics.
Significant reduction in trade deficit number will help to narrow down the Current Account Deficit which is the major issue to handle external payments.
As per the latest data released, exports stood at USD 2,219 million while Imports were USD 4,861 million during July 2022.
The data showed that exports during July 2022 were 23.95 percent lower than exports of June 2022 and decreased by 5.17 percent compared to exports of July 2021.
The data showed that imports during July 2022 were 38.31 percent lower than imports of June 2022 and decreased by 12.81 percent compared to imports of July 2021.
However, slower imports will trim revenue collection from customs group of FBR, hinting slower economic growth and lower consumption of products owing to higher prices.
Moreover, trade deficit also decreased by 18.33 percent during the month of July 2022 when compared with data of the same month last year.
It is important to mention that trade deficit increased by 55.29 percent YoY to USD 48,259 million during the fiscal year 2022 which runs from July to June.
The previous high trade deficit was registered in fiscal year 2018 when it recorded at USD 37,583 million on imports of USD 60,795 million.
Exports hit historic high of USD 31,276 million with increase of 25.51 percent in fiscal year 2022 due to higher textile exports and commodity prices. In fiscal year 2021, exports were recorded at USD 25,304 million.
Imports during the year crossed USD 80 billion level for the first in country’s history and recorded at USD 80,019 million. Imports registered growth of 41.93 percent due to higher oil and commodity prices.