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Major dip in exports and imports in July shrinks trade deficit

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  • Pakistani exports and imports fell by double digits in July.
  • July trade bulletin reveals goods exports amounted to over $2bn. 
  • Decline partly attributed to import ban to manage dollar shortage.

ISLAMABAD: Pakistani exports and imports fell by double digits in July, registering a major decline as compared to the previous month, The News reported, citing the Pakistan Bureau of Statistics (PBS) data.

As per the PBS data, the exports dropped 12.7% in the first month of the current fiscal, while the month-on-month drop was 8.6%.

PBS data showed that imports also witnessed a substantial decrease of 13.75% compared to the previous month and 26.4% compared to the same month a year ago.

The trade bulletin for July 2023 revealed that goods exports amounted to $2.057 billion, down from $2.356 billion in June 2023 and $2.25 billion in July 2022. Meanwhile, goods imports in July 2023 were valued at $3.66 billion, down from $4.2 billion in June 2023 and $4.98 billion in July 2022.

This decrease in imports helped reduce the trade deficit by 41.2% to $1.61 billion in July 2023 compared to $2.73 billion in July 2022.

In June 2023, the trade gap was $1.86 billion.

The decline in imports was partly attributed to the government’s decision to ban several luxury items in an effort to manage the dollar shortage in the economy.

Throughout the fiscal year 2022-23, the country saw a significant reduction in the trade deficit, which shrunk by 43% to $27.55 billion, down from $48.35 billion in the previous fiscal year. During the same period, total exports declined by 12.7%, reaching $27.7 billion, while imports shrank by 31%, amounting to $55.3 billion.

The PBS also reported the services trade performance data for July-June 2022-23. According to the trade statistics for international services during this period, local companies imported more services than they exported.

The trade deficit in services witnessed a remarkable decrease of 87.7%, reaching $719.4 million in FY23 compared to $5.84 billion in FY22.

In FY23, the economy hired the services of foreign companies for $8.02 billion and exported services abroad for $7.3 billion. 

In FY22, the country’s services exports were recorded at $7.1 billion, and imports stood at $12.9 billion, representing an increase of 2.78% in services exports and a 38% decline in imports.

In June 2023, services exports were valued at $571 million, while imports amounted to $655 million, resulting in a deficit of $84 million. In May 2022, exports were recorded at $607 million, imports at $903 million, and the deficit at $296 million. 

During the month under review, services exports decreased by 5.9%, and imports decreased by 27.5% compared to the previous month. Comparing June 2023’sservices to the trade performance of the same month the previous year, exports were down by 14%, and imports shrunk by 50.7%.

In June 2022, services exports amounted to $664 million, and imports reached $1.328 billion, resulting in a deficit of $664.9 million.

In June 2023, the services trade deficit was recorded at $84 million, marking a reduction of 87.4% compared to the corresponding month of the previous year.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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