ISLAMABAD: Pakistan’s trade deficit marginally widened to $9.6 billion in the first five months of current fiscal year due to a nominal increase in both exports and imports, Pakistan Bureau of Statistics (PBS) reported.
During July-November 2020, exports slightly increased by 2.1% and stood at $9.7 billion as compared to $9.5 billion in the same period of last year. There was an increase of $201 million in exports in five months. Imports have started picking up due to the restoration of economic activities but also signals widening of the trade deficit.
Imports during the July-November period increased by 1.3% or $247 million to $19.4 billion. As a result, the balance of trade recorded a marginal increase of 0.5% to $9.7 billion, stated the PBS.
Pakistan’s exports have long remained around $2 billion a month and the trend did not significantly change despite 39% currency depreciation in the past two years.
The government has already missed the annual export target in its first two years. it has set the export target at $27.7 billion for the current fiscal year which will require only 6.2% growth. However, exports in the first five months were equal to only 35% of the annual target. Imports in the current fiscal year are projected to contract 4.8% to $42.4 billion.
On an annual basis, the trade deficit in November 2020 compared to the same month a year ago widened 7.9% from $1.9 billion to $2.1 billion. In absolute terms, there was an increase of $151 million in the trade deficit on an annual basis.
In November 2020, imports surged to $4.2 billion compared to $3.9 billion in the same month of last year, which reflected an increase of 7.8% or $305 million. Exports increased by 7.7% to $2.16 billion in November, a net rise of $154 million. On a month-on-month basis, exports grew 2.7% in November over October this year.
There was an increase of $57 million in export receipts as compared to the preceding month. The total monthly exports were only $2.16 billion. Imports registered an increase of 8.2% and stood at $4.2 billion last month. There was an increase of $322 million in imports within a month. As a result, the trade deficit widened 14.7% or $265 million in November over October.
