Trade gap balloons by over 100pc in 1QFY22

Country's imports increase by 65 per cent

ISLAMABAD: As imports continue to swell, the country’s trade deficit in the first quarter of the current financial year (1QFY22) widened to $11.66 billion or 100.6 per cent as exports during July to September 2021 were recorded at $6,967 billion against the import of $18.6 billion, data released by the Pakistan Bureau of Statistics (PBS) showed on Monday.

The merchandise trade deficit reached $11.664 billion in July-September 2021 from $5.814bn over the corresponding months of FY21.

According to the trade data, the country’s imports stood at $18.631 billion during 1QFY22 compared to $11.286 billion during 1QFY21, registering a 65 per cent increase.

Exports witnessed 27.3pc growth during July-September FY22 and remained $6.967 billion compared to $5.472 billion during the same period of FY21.

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The data shows the trade deficit widened by 70 percent on a year on year basis and stood at $4.099 billion in September 2021 compared to $2.410 billion in September 2020. The country’s exports witnessed 26.1 percent growth on a year on year basis in September 2021 and stood at $2.380 billion compared to $1.887 billion in September 2020. Imports witnessed 50.7 percent growth on a year on year basis in September 2021 and stood at $6.479 billion compared to $4.297 billion in September 2020.

The data further revealed that the trade deficit on a month on month basis narrowed by 5.3 percent to $4.099 billion in September 2021 compared to $4.330 billion in August 2021. The country’s exports registered 5.9 percent growth on a month on month basis and stood at $2.380 billion in September 2021 compared to $2.247 billion in August 2021. Imports declined by 1.4 percent in September 2021 and stood at $6.479 billion compared to $6.577 billion in August 2021.

The trade figures were slightly worse than what Adviser to the Prime Minister on Commerce Razak Dawood shared with the media on Monday.

According to the Adviser, exports have increased by 27.4 percent in September 2021 to $2.41 billion as compared to $1.89 billion in September 2020. However, according to PBS data, exports increased by 26.1 percent on a year on year basis. He further said for the first quarter of fiscal year 2021-22, the exports have increased by 28 percent to $6.99 billion as compared to $5.47 million in Q1 of 2020-21. However, according to PBS data, exports increased by 27.3 percent during this period. The Adviser did not share import data and stated that the import figures are being analysed in consultation with other government departments and would be released shortly. However, till filing this report, import figures were not shared.

 

 

 

 

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Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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