Trade deficit shrank by nearly 38pc in the first two months of current fiscal year
The government has set a target to bring down annual trade gap to $27.476 billion by June 2020.
- Trade deficit in the months of July and August decreases immensely by 38pc.
- In first two months of 2019-20, the export remains static.
The trade deficit of Pakistan in the first two months of the current fiscal year immensely decreases up to 38pc. This was only attainable by shrinking the imports of unessential luxury products.
Finally, the government’s efforts versus inflated trade deficit are paying off. In spite of the insignificant growth in exports, imports have plunged.
Provisional Trade Figures
In July-August, the trade deficit immersed to $3.973 billion from $6.37 billion over the corresponding months of last year. Hence the decline of 37.62pc has been observed from the last year.
On the other hand, on a monthly basis, the trade deficit slowed by a heavy margin of 42.25pc to $1.848bn in August as against $3.20bn over the same month last year. The government has put an objective to cut down the yearly trade gap to $27.476 billion by June 2020.
During the last monetary year, the nation’s exchange deficiency limited to $31.82bn, enlisting a decay of 15.33pc. The decrease returned to the government’s intercessions to capture the rising import bill. Even though export continues posted a blended pattern during a similar period.
The provisional figures demonstrate the imports in July and August checked in at $7.659bn, down 21.74pc from $9.787bn over the same period last year.
Additionally, the government also slapped restricted furnace oil imports a year ago. Furthermore, various strategy intercessions including improved power supply, import substitution drive, financial stabilization, and currency attenuation.
Duty Free Imports
On the contrary, duty-free imports like raw materials and machinery widen by over by 6.89pc to $3 billion in July-August as against $2.9 billion over the same months last year.
According to the customs officer, the increase in raw material and machinery imports will probably increase the growth of the country. “We are expecting that duty waiver on raw materials and machinery will boost economic activities in the current fiscal year”, the official hoped.
Collective exports during the current fiscal year are probably to reach $26.187bn up from $24.656bn in 2019. The cost of raw materials and semi-finished items has decreased.
Also See:Good News! Pressure On Reserves And Currency Will Ease By June Next Year If July 2019 Trade Trend Continues – Razak Dawood
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