Trade deficit shrank to $23.18 bn in fiscal 2019-20

ISLAMABAD: Pakistan’s trade deficit shrank to $23.18 billion in fiscal year 2019-20 against $31.8 billion in 2018-19, registering 27 percent decline in trade balance.

According to the official data released by the Pakistan Bureau of Statistics (PBS), exports fetched $21.387 billion in the last fiscal year ending on June 30, 2020 against the desired target of $24 billion.

The exports stood at $22.958 billion in the previous fiscal year 2018-19. The exports declined by 6.8 percent in fiscal year 2019-20 compared to 2018-19.

In the aftermath of COVID-19 pandemic, it was projected that the exports would decline by $4 to $5 billion in the last fiscal year.

The imports stood at $44 billion in last fiscal year 2019-20 compared to $54.7 billion, registering a decline by 18.6 percent. The import bill got compressed owing to tariff and non-tariff barriers as well as the reduced oil prices in the last quarter of the fiscal year 2019-20.

The overall trade balance decreased to $23.183 billion in fiscal year 2019-20 compared to $31.805 billion, registering a decline by 27.11 percent.

The exports stood at $1.592 billion in June 2020 compared to $1.703 billion in same month of last year 2019, registering a decline by 6.52 percent. The imports were standing at $3.715 billion in June 2020 compared to $4.353 billion, registering a decline by 14.66 percent.

The trade deficit in June 2020 stood at negative $2.123 billion compared to $2.650 billion, registering a decline by 19.89 percent.

The exports fetched $1.592 billion in June 2020 against $1.396 billion in May 2020 so the exports increased by 14.04 percent in June 2020.

The imports stood at $3.715 billion in June 2020 against $2.863 billion in May 2020 so imports increased by 29.7 percent. The overall trade balance remained negative $2.123 billion in June 2020 compared to negative $1.467 billion, registering 44.7 percent improvements.