Business

Trade deficit recedes by 30pc in July-Nov as imports dip

Published

2 years ago

Farwa

Imports drop by 20.15% in July-November.
33.6% imports dip in November 2022.
Services trade deficit receded by 38%.

ISLAMABAD: The country’s trade deficit in the first five months of ongoing fiscal year 2022-23 fell by 30.14% to $14.4 billion due to a drop in non-essential imports, The News reported Friday.

According to the monthly trade bulletin of the Pakistan Bureau of Statistics (PBS), the imports in July-November dropped by 20.15% to $26.34 billion from $32.98 billion in the same period last year.

However, exports were also reduced by 3.5% in the same period to $11.93 billion against $12.36 billion in the same period last year, the PBS said Thursday.

Compared to November 2021, Pakistan imported 33.6% fewer goods and sold 18.3% fewer products abroad in November 2022. In November 2022, exports dropped by 18.34% to $2.37 billion from $2.9 billion in the same month in 2021, while imports dropped 33.6% to $5.245 billion from $7.9 billion in November 2021.

The trade deficit was narrowed by 42.46% to $2.88 billion from $4.99 billion in the same month last year.

A downward trend has been witnessed in the import bill since the beginning of the current fiscal year as imports fell by 10.4% in July, 7.7% in August, 19.7% in September, 27.2% in October and 33.6% in November over their respective corresponding months of 2021, PBS trade bulletin revealed.

Comparing monthly trade performance with the previous month (October), goods exports in November 2022 fell 0.63% from $2.38 billion last month, while imports increased 11.34% compared to October’s $4.7 billion.

Experts predict the export bill might not touch the $29 billion threshold in 2022-23. The average monthly exports in the first five months of the fiscal year are $2.386 billion. The export growth has been affected by local constraints and the slowdown of world economies. Economic policies such as costly bank financing, rupee devaluation, and expensive input costs alongside political instability have played a significant role in the export drop.

It is pertinent to mention that in the last fiscal 2021-22, the economy accumulated a record-high trade deficit of $48.38 billion, registering over a 31% upsurge over the fiscal year 2020-21.

Trade in Services

The PBS also issued economic performance data on trade in services with other countries. The services trade deficit receded by 38% to $812 million against $1.31 billion a year ago in the first four months of the fiscal year. From July to October, services exports increased by 3.97% to $2.26 billion, and imports dropped by 11.8% to $3.1 billion.

Services exports in October 2022 increased by 1.14% to $559 million, while imports dropped by 26% to $730 million against exports of $553 million and imports of $986 million in October 2021. Yearly, the services trade deficit lowered by 60.55% to $171 million in October 2022 against $433 million in October 2021.

PBS data shows that the services exports declined by 2.1% and imports by 1% over the previous month. In September 2022, Pakistan earned $571 million by selling its services abroad, while local businesses hired services worth $737 million from overseas service providers, registering a $166 million deficit.

Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

Published

19 hours ago

Farwa

The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

Business

Weekly inflation in Pakistan increased by 0.17 percent.

Published

19 hours ago

Farwa

The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

Business

The price of gold has drastically dropped in Pakistan.

Published

2 days ago

Farwa

As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.