Trade deficit shrinks 34 percent in current fiscal year

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ISLAMABAD: The country’s trade deficit fell by 34 percent in the first four months of current fiscal year due to a notable contraction in imports and a nominal increase in exports.

The data showed that trade deficit in the first four months dipped to $7.77 billion from $11.69 billion over the corresponding period last year, reflecting a decline of $4.19 billion or 33.52 percent.

The Pakistan Bureau of Statistics (PBS) reported that imports dropped 19.21% to $15.32 billion in first four months of fiscal year 2019-20 compared to $18.96 billion in the same period of previous fiscal year.

Meanwhile, exports crawled up 3.81% to $7.54 billion in the four-month period against expectations of annualised growth of over 8%. Exports stood at $7.27 billion in the corresponding period of last year, according to the PBS.

The incumbent government has taken several measures to curtail rising import bill since coming into power in August 2018.

In the budget 2019-20, the government reduced cost of raw materials and semi-finished products used in exportable products by exempting them from all customs duties. Government also promised to provide sales tax refund to exports sectors.

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