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Wednesday, November 13, 2024

Pakistan faces alarming trade deficit

The trade deficit increased by 55.29 percent during fiscal year 2021-22 as a result of prevailing circumstances in the country

According to Pakistan Bureau of Statistics (PBS) figures, the trade deficit increased by 55.29 percent during fiscal year 2021-22, reaching $48.26 billion compared to $31.076 billion during the same period in 2020-21.

According to the PBS monthly summary of international trade statistics for June 2022, the country’s exports climbed by 25.51 percent to $31.760 billion in fiscal year 2021-22, up from $25.304 billion in the previous fiscal year.

Read more: Is China taking over the export industries of Pakistan?

Imports rose by 41.93 percent for the fiscal year to $80.019 billion, up from $56.380 billion during the same period the previous year, as per the PBS.

Moreover, the country’s trade deficit widened by 33.41 percent year on year, rising from $3.624 billion in June 2021 to $4.835 billion in June 2022, according to the PBS.

Imports grew by 21.57 percent year on year, rising from $6.352 billion in June 2021 to $7.722 billion in June 2022. While exports climbed by 5.83 percent year on year, rising from $2.758 billion in June 2021 to $2.887 billion in June 2022.

According to PBS data, the trade deficit increased by 16.48 percent from $4.151 billion in May 2022 to $4.835 billion in June 2022.

Imports climbed by 13.94% month on month and stood at $7.722 billion in June 2022, up from $6.777 billion in May 2022. While exports jumped by 9.94 percent month on month to $2.887 billion in June 2022, up from $2.626 billion in May 2022.

Read more: Developing an export culture in Pakistan

Rising inflation, power outages, import ban, POL prices and raw materials shortage have hindered the operations of numerous production plants which is ultimately resulting in massive unemployment, failure to fulfil export orders and closures. Recently, 400 textile mills in the country have announced closure due to challenging circumstances.