November 2, 2022 (MLN): The country’s trade deficit during the month of October narrowed by 21.92%MoM to $2.26 billion compared to $2.9bn during September 2022, latest data published by the Pakistan Bureau of Statistics showed on Wednesday.
On a year-on-year basis, the trade deficit slumped by 42% from $3.9bn during October 2021.
The reduction in trade deficit came on the back of steep fall in imports to $4.64bn, which witnessed a decline of 13.3%MoM and 27.2%MYoY primarily due to overall economic slowdown in the country owing to rising costs and high interest rates.
Meanwhile, the exports also showed slight decline during the month under review, clocking in at $2.37bn, down 3.1%MoM and 3.8%YoY.
Overall, the trade deficit during the 4MFY23 fell to $11.47bn down 26.6%YoY from $15.62bn during the same period last year. During the same period, imports have reduced by 16.21%YoY to $21bn from $25.1bn last year whereas exports remained flat at $9.5bn.
The reduction in imports comes on the back of slump in overall economic outlook as consumption in the economy as reflected in the sales of fuel products, cement, automobiles, etc. has taken a major hit during the 4MFY23 as inflation has skyrocketed to record-high levels during the period under review.
With the decline in trade deficit, the October current account deficit will likely be lower than the previous month’s $0.3bn.
