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

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2 years ago

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  • 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.

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Trade Agreements Worth $10.70 Million Were Signed At Expo For Pakistan And Indonesia To Increase Their Trade With The Support Of SIFC

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Through the assistance of the Special Investment Facilitation Council (SIFC), Pakistan and Indonesia have reiterated their dedication to improving their economic and commercial ties.

The participation of a Pakistani trade delegation was made possible by Indonesia at a recent trade expo, which resulted in the formation of agreements and memorandums of understanding with a total value of 10.70 million $. In addition to retail items and automobile components, these agreements span industries such as coconut, cocoa, ginger, spices, and retail goods.

As a key step toward improving economic ties, particularly with the Sindh business community, the participation of the group was praised by Tegu Viveko, who is acting as the Consul General of Indonesia.

Abid Nisar, the head of the Pakistan-Indonesia business council, has stated his confidence regarding the possibility of enhanced relations between the two countries, highlighting the historical and cultural origins of the connection.

In its capacity as a member of the G20, Indonesia intends to assist both nations in maximizing the benefits of their partnership in order to achieve better economic stability.

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Pakistan’s textile exports rose by 9.51% to $4.520 billion.

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Pakistan’s textile exports had a 9.51 percent increase in the first quarter of the current financial year (2024-25) compared to the same quarter of the previous year.

The Pakistan Bureau of Statistics (PBS) reported that textile exports from the country amounted to US $4.520 billion during July-September (2024-25), compared to US $4.127 billion during the same period in the previous year (2023-24).

The textile goods that facilitated trade expansion comprised cotton fabric, whose exports rose by 10.20 percent to $523.63 million from $475.187 million, and knitwear, which experienced a 14.13 percent increase in exports to $1,268.908 million from $1,111.818 million.

Other commodities that experienced trade growth included bed wear, with exports increasing by 13.31 percent to $794.972 million from $701.570 million; towels, which rose by 7.04 percent to $261.316 million from $244.134 million; and tents, canvas, and tarpaulin, which grew by 5.43 percent to $28.796 million this year compared to $27.312 million last year.

The export of readymade garments increased by 23.17 percent to $996.831 million from $809.316 million; art, silk, and synthetic textiles rose by 15.79 percent to $96.482 million; made-up articles (excluding towels and bed wear) grew by 12.10 percent to $191.050 million from $170.422 million; and the export of other textile materials surged by 8.73 percent to $187.145 million from $172.112 million.

The textile commodities that had negative trade growth were cotton yarn, with exports decreasing by 48.45 percent, from $315.404 million to $162.579 million, while raw cotton exports fell by 100 percent from 6.621 million to zero during the reviewed months.

The export of yarn, excluding cotton yarn, decreased by 15.15 percent, from $10.096 million to $8.566 million.

In September 2024, textile exports experienced a year-on-year growth of 17.92 percent compared to the same month in the previous year.

Textile exports from the country in September 2024 amounted to US $1,604.481 million, compared to US $1,360.902 million in September 2023.

Textile exports from the country experienced a nominal decline of 2.40 percent in September 2024, compared to the $1,644.333 million reported in August 2024, according to PBS statistics.

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PIA is designated as the official airline of IDEAS 2004.

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PIA has been designated as the official airline of IDEAS 2024. The PIA will utilise its aircraft for the promotion of IDEAS 2024.

In this context, the emblems of IDEAS 2024 have been affixed to two Boeing 777 aircraft and two Airbus planes of Pakistan International Airlines.

The International Defence Exhibition and Seminar (IDEAS) 2024 is scheduled to commence from November 19 to 22 at the Karachi Expo Centre.

The government of Pakistan places significant value on IDEAS. The show draws several delegates and is perceived as a means to promote their local arms trade.

The inaugural IDEAS launch took place in 2000, serving as a platform to promote Pakistan’s indigenous arms manufacturing industry while allowing international suppliers to provide solutions for the needs of Pakistan’s tri-services.

The event, consistently held at the Karachi Expo Centre, attracted forty-five foreign delegations in its inaugural year.

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