Trade deficit widens by 21.6pc in 10MFY21

Pakistan’s trade deficit posted double-digit rise as it widened by 21.6 per cent to $23.83 billion in the 10 months of 2020-21 from $19.59bn over the corresponding period last year, Pakistan Bureau of Statistics (PBS) data showed on Wednesday.

According to a report by a local media outlet, the trade gap has been widening since December 2020. The surge in trade deficit is mainly led by exponential growth in imports with comparative slow growth in exports proceeds from the country.

In FY20, the country’s trade deficit had narrowed to $23.099bn from $31.820bn. However, this target was now crossed in 10 months of FY21, indicating a serious pressure on external side due to rising imports.

In April 2021, the trade deficit ballooned by 33.24pc to $2.99bn as against $2.24bn over the corresponding month of last year.

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On a month-on-month basis, it dipped by 9.14pc. The import bill went up by 60.02pc to $5.18bn in April 2021 from $3.20bn over the corresponding month of last year. On a month-on-month basis, the import bill decreased by 8.34pc. Between July and April FY21, the import bill increased by 17.67pc to $44.706bn this year as against $37.992bn over the corresponding months of last year.

Exports posts a growth year-on-year 129.74pc to $2.19bn in April from $0.995bn over the last year. On a month-on-month basis, exports dipped by 7.23pc.

In 10MFY21, export proceeds rose 13.49pc to $20.88bn as against $18.39bn in the corresponding period last year.

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