Raza Khan

Pakistan’s trade deficit with China reduced significantly by 64.80% during February 2023 compared to the same month last year, according to the Ministry of Commerce. The trade deficit with China dropped to $452 million in February 2023 from $1.284 billion during the corresponding month of last year, data shows.

Pakistan’s trade deficit with China also declined by 42.15% during the July-February period of the fiscal year 2022-23 to $6.581 billion from $11.376 billion during the corresponding months of 2021-22. The trade volume between the two countries declined by 33.60% during February FY23 as against the same period of FY22. The volume of bilateral trade dropped to $1.182 billion during February 2023 from $1.780 billion during the same month of 2022, data shows.

Pakistan’s exports to China increased by 28% during the month under review to $365.5 million from $248.8 million during the same period of 2022. Imports from China were recorded at $817 million during February FY23 compared to $1.532 billion during the corresponding month of last year, with a decline of 47%.

According to the Ministry of Commerce, a declining trend has been observed in bilateral trade between Pakistan and China during each month of the current fiscal year. According to experts, the current challenging economic situation of Pakistan is the primary reason behind the decline in its bilateral trade with China.

The Government of Pakistan has reduced imports to save foreign exchange reserves which resulted in a decline in imports, especially from China. Because of reduction in imports of raw material for industrial production, exports are also on the declining trend. Pakistan’s overall bilateral trade with China during the first eight months of FY23 also declined by 36%. The volume of bilateral trade during July-February FY23 fell to $9.841 billion from $5.368 during the same period of FY22.

Pakistan’s exports to China dropped by 18.33% during the period under review to $1.630 billion from $1.996 billion during the corresponding period of the last fiscal year. Imports from China also dropped to $8.211 billion during the first eight months of FY23 from $13.372 billion during the same period of last fiscal year, with a decline of 33.55%.

According to the Ministry of Commerce, with a bilateral trade volume of $19.457 billion, China remained Pakistan’s largest trade partner during 2021-22. Pakistan’s exports to China were recorded at $3.111 billion during 2021-22, while imports were registered at $16.346 billion. Pakistan’s export items to China include cotton, copper, cereals, fish, crustaceans, molluscs, aquatics invertebrates, oil seed, oleagic fruits, grain, seed, fruits, beverages, spirits and vinegar, aluminium, apparel, salt, sulphur, leather and plastics.

Pakistan’s imports from China are electrical, electronic equipment, machinery, nuclear reactors, boilers, pharmaceutical products, mineral fuels, oils, distillation products, organic chemicals, iron and steel, vehicles other than railway, tramway, plastics, fertilisers, manmade filaments, and rubbers.

Credit: Independent News Pakistan-WealthPk