Business

Trade deficit shrinks 1.88% from July to October

Trade deficit

The country’s trade deficit witnessed reduction of 1.88 percent during the first four months of current fiscal year (2020-21) as compared to the deficit of the corresponding period of last year.

The latest data released by the Ministry of Trade reveals that during the period of July to October 2020, there has been a fall in exports to the extent of 0.1%. During this period last year, the value of imports was $7.547 and now this value comes to $7.54.

Read more: Textile exports increase 2.92%, non-textile exports contract 5.6% in first quarter

During the same period, there was a reduction in the volume of imports to the extent of 2.3% and total imports were of the $15 billion therefore as a result, the balance of trade fell to $7.4 billion. During the same period last year, the balance of trade was $7.8 billion. The fall in imports also shows that the growth of the economy of Pakistan is not satisfactory.

The trade deficit report mentions that the increasing cases of the Covid-19 are also a big challenge for the economic scenario which may cause the slowing down of the economy more than the expectations.

It is relevant to mention here that import was the sector in which the PTI government has been claiming high to boost it up but things did not move in the directions which were expected. The volume of the imports has been stagnant at $2 billion per month for a long time despite the heavy reduction in the value of our currency which is 39%.

At present, the cases of Coronavirus are increasing all over the world, including Europe and the USA but a few months back, Pakistan had a golden opportunity of taking the benefit of the situation when Covid-19 was successfully controlled in Pakistan and the situation of the same was worst in India and Bangladesh.

Pakistani businessmen started receiving orders from European and American Traders. It is astonishing why the benefits of the situation were not taken and why the exports could not reach the desired level.

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