ISLAMABAD: Following the import constraints and devaluation of local currency against dollar, the exports of Pakistan have plummeted by 10% during nine months through July 2022 to March 2023, according to Pakistan Bureau of Statistics (PBS).
As per the data, exports of the country slipped to $21.05 billion during the first nine months of the current fiscal year as compared with $23.35 billion in the same period of the last fiscal year.
On the other hand, the country’s imports plunged by 25%, to $43.94 billion during the period under review as compared with $58.86 billion in the corresponding period of the last fiscal year. Therefore, the trade deficit of the country contracted by 35.5%, tipping $22.9 billion during the nine months of FY 2022-2023, as compared to $35.51 billion during the same period of the last year.
The contraction in trade deficit may be attributed to restrictions imposed by the government in May 2022 on import of luxury and non-essential items. Although the ban was lifted in August 2022 after pressure from the International Monetary Fund (IMF).
Currently, the government has partially lifted the import ban but the State Bank of Pakistan (SBP) put in place restriction on issuance of letter of credit (LC) for import payment.
