Raza Khan

Decline in imports helped Pakistan reduce its trade deficit during the first eight months (July-February) of the current fiscal year 2022-23. Pakistan’s trade deficit narrowed down by 32.74% in 8MFY23 compared to the same period of last fiscal year, the ministry of commerce reported. The country’s trade deficit reduced to $21.44 billion during the period under review from $31.879 billion over the corresponding months of FY22.

According to Pakistan Bureau of Statistics (PBS), the country’s imports declined by 23.51% during the July-February period to $40.118 billion from $52.452 billion in the same period of FY22. According to the ministry of commerce, Pakistan’s imports from the US declined by 26.26% during the July-February period to $1.437 billion from $1.949 billion over the same period of last year.

The country’s imports from China also dropped to $8.211 billion in 8MFY23 from $13.372 billion in 8MFY22, registering a decline of 33.55%. China is Pakistan’s largest trading partner and also the biggest source of imports. Pakistan’s imports from the UK also declined 32.23% to $439.249 million from $648.227 million in 8MFY22.

With a massive decline of 52%, Pakistan’s imports from Japan stood at $657 million during the July-February period of FY23 against $1.370 billion over the same months of last fiscal year. Pakistan’s imports from South Korea also dropped by 41.77% to $584.625 million from $1.004 billion in July-February 2021-22.

With a decline of 28.86%, Pakistan’s imports from Malaysia dropped to $738.356 million during the period under review from $1.038 billion during the same months of last fiscal year. Pakistan’s Imports from Saudi Arabia, Sri Lanka, Germany, Switzerland, Afghanistan, Denmark, and Thailand also recoded substantial decline.

On the other hand, Pakistan’s imports from Indonesia, Qatar, Kuwait, Australia, Morocco and the Netherlands recorded substantial growth. According to PBS data, Pakistan’s overall exports also declined by 9.21% during first eight months of 2022-23. The country’s total exports were recorded $18.678 billion during the July-February period of the current fiscal year against $20.573 billion over the corresponding months of 2021-22.

Credit: Independent News Pakistan-WealthPk