Trade deficit registers 27% decline during FY2019-20

ISLAMABAD: Pakistan’s trade deficit shrank to $23.18 billion during the last fiscal year against $31.8 billion in 2018-19, registering a 27% decline, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.

According to the data, exports fetched $21.387 billion in the last fiscal year ending on June 30, 2020, against the desired target of $24 billion.

Exports stood at $22.958 billion in the previous fiscal year 2018-19, however, they declined by 6.8% in the fiscal year 2019-20 compared to 2018-19.

In the aftermath of COVID-19 pandemic, it was projected that the exports would decline by $4 to $5 billion in the last fiscal year.

The imports stood at $44 billion in the last fiscal year 2019-20 compared to $54.7 billion, registering a decline by 18.6%. The import bill got compressed owing to tariff and non-tariff barriers as well as reduced oil prices in the last quarter of the fiscal year 2019-20.

The overall trade balance decreased to $23.183 billion in the fiscal year 2019-20 compared to $31.805 billion, registering a decline by 27.11%.

The exports stood at $1.592 billion in June 2020 compared to $1.703 billion in the same month of the last year 2019, registering a decline of 6.52%. The imports were standing at $3.715 billion in June 2020 compared to $4.353 billion, registering a decline of 14.66%.

The trade deficit in June 2020 stood at negative $2.123 billion compared to $2.650 billion, registering a decline by 19.89%.

The exports fetched $1.592 billion in June 2020 against $1.396 billion in May 2020 so the exports increased by 14.04% in June 2020.

The imports stood at $3.715 billion in June 2020 against $2.863 billion in May 2020 so imports increased by 29.7%. The overall trade balance remained negative $2.123 billion in June 2020 compared to negative $1.467 billion, registering 44.7% improvements.

Originally published in The News