Pakistan’s Trade Deficit Expands by Nearly 16 Percent to Exceed $14 Billion During First Four Months of Fiscal Year; Exports Up by 8.52 Percent While Imports Surge by 12.59 Percent
ISLAMABAD: During the first four months of the current fiscal year, trade deficit has seen a significant increase in Pakistan as imports have increased at a faster pace than exports.
The Pakistan Bureau of Statistics ( PBS) has published official trade figures showing the trade deficit of Pakistan widened to $14.628 billion in the first four months of this year ( July to October). When compared with the same period of the previous fiscal year, the trade deficit grew by more than $2 billion annually, from $12.614 billion in the previous year.
An outline of Pakistan’s trade deficit and economic statistics for the year 2016-2017.
Exports and Imports Growth: The country’s total exports rose 8.52 per cent to cross the $11.33 billion mark over the four months while the total imports grew by 12.59 per cent to cross the $25.96 billion mark during the period.
October exports rose by 2.84 percent from September to $2.92 billion while imports grew by 5.72 percent to $6.80 billion.
October Trade Gap: The trade gap widened 10.30 percent to $3.87 billion in October from a year earlier gap of $3.23 billion, reflecting a 19.70 percent increase.
Macroeconomic Context: An economic expert states that a trade deficit happens when a country’s expenditure on imports exceeds the expenditure on exports such that the balance of payments is negative in international transactions. A long-term trade deficit means that a nation’s consumers are buying more than it can produce.