PAK TRADE DEFICIT SHRINKS TO $11.8 BN IN FIRST FOUR MONTHS OF FISCAL YR 2019

ISLAMABAD: Pakistan’s trade deficit marginally contracted to USD 11.8 billion in the first four months of the current fiscal year on the back of almost flat growth in imports for the fourth consecutive month while the pace of increase in exports remained modest despite numerous rounds of currency depreciation.

The Pakistan Bureau of Statistics (PBS) said the USD 11.8 billion deficit, recorded in July-october FY19, was nearly 2 per cent or USD 237 million

lesser than in the same period

last fiscal, The Express Tribune reported on Friday.

Exports in the July-october period increased 3.52 per cent to USD 7.3 billion. In absolute terms, the export receipts rose USD 248 million, but the pace of increase was slower than the preceding year. The value of imported goods stood at USD 19.1 billion, which was only 0.6 per cent or USD 11 million higher than the import bill in the corresponding period of previous fiscal year.

Exports were 261 per cent less than the value of imports.

Imports of the country have started to ease due to the State Bank of Pakistan’s (SBP) numerous policy and administrative measures. Additionally, the federal government has imposed heavy regulatory duties on imported goods.

Over the past 10 months, the SBP has let the rupee depreciate by 26.6 per cent to 133.7 against the US dollar in a bid to curtail the current account deficit which is presently Pakistan’s biggest challenge.