Global News Pakistan
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Pakistan’s Growing Trade Deficit

The first quarter of the fiscal year showed an increase of more than 100% in the trade deficit. Significantly more than three times the increase in imports compared with exports.

The surge in trade deficit is mainly led by exponential growth in imports with comparative slow growth in export proceeds from the country.
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Islamabad, 6 October 2021 (GNP/ TDI): The first quarter of the fiscal year showed an increase of more than 100% in the trade deficit. Significantly more than three times the increase in imports compared with exports. The trade deficit reached $ 11billion in July-September 2021 from $ 5.8 Billion in the months corresponding to last year.

The lack of trade poses a serious threat to external pressure. However, government officials believe that an increase in remittances will help the country’s economy. Growth in exports will help reduce pressure to a large extent. The increase in trade deficits was reported consecutively in the third month as the deficit in retail sales reached $ 4bn in September from $ 2bn in the corresponding months last year. Preliminary estimates suggest that an increase in import revenue could push the current account to $ 10bn.

Consumer prices affected by the rapid rupee depreciation and rising energy prices last month have risen to the highest level in three months. Over the past three months, prices for fresh vegetables, fruits, and meat have also risen to 8% year on year. Inflation had begun to decline after an increase of 11% in April, mainly due to declining agricultural commodity prices. In 2021-21, annual CPI inflation was recorded at 8% compared to 10% in the previous year

 

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