Pakistan’s trade deficit reduces by 35pc in the first quarter

The government’s fight against expanded trade has finally started to show the result as the trade deficit is declining constantly for the third successive month.

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  • The trade deficit cut down to $5.7b from $8.79b as compared to the parallel time last year.
  • In September, exports were increased by 2.67% to $1.76b from $1.7b over the parallel period last year.

trade deficit

In the first quarter of the current fiscal year, the trade deficit of Pakistan reduces by 35%. This was achieved by a modest surge in exports and a decrease in imports of  luxury goods.

Third successive month

The government’s fight against expanded trade has finally started to show the result as the trade deficit is declining constantly for the third successive month.

According to the quarterly figures, the trade deficit cut down to $5.7b from $8.79b as compared to the parallel time last year. It reflects the decrease of 34.8% or $3.07b.

The trade deficit of Pakistan in the fiscal year 2018-2019, reduced to $31.82b, marking a drop of 15.33%. The government is determined to bring down the yearly trade gap to $27.47b by June 2020.

PM Advisor on Finance Hafeez Shaikh took to twitter; sharing the good news with the people that stabilization reforms introduced by the government have started to bear fruit.

“The reforms initiated in trade and taxes have helped the government to achieve the desired results”, he said while adding that, “we have achieved real progress last year to create a platform for sustainable development”.

It is substantial to mention that since October 2016, imports have resided well above the $3b mark. They constantly have increased over time toping at $5.8b in May 2018.

Export increases

Moreover, in September exports were increased by 2.67% to $1.76b from $1.7b over the parallel period last year.

It is also predicted that overall exports during the present fiscal year are expected to reach $26.18b, high from 24.656b.

PM Advisor further said in his tweet, t textile sector gained 26% development quantity-wise. He added the textile industry is the backbone of Pakistan’s export. The government of Pakistan is working to increase productivity and add value to exports.


Also See: Experts Say Pakistan Could Be The Third Most Fortunate Beneficiary From US-China Trade War

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