The trade deficit declines by 22.6% in October 2020: Abdul Razak Dawood

November 03, 2020: The Adviser to the Prime Minister on Commerce and Investment, Abdul Razak Dawood on Tuesday informed that as per the provisional trade data for the month of October 2020, the exports have shown an increase of 2.1% and stood at $ 2,066 million as compared to $2,024 million in October 2019.

To review the current export trends, a meeting held on Tuesday, in the Ministry of Commerce, under the chairmanship of the Adviser to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, said a press release issued by Ministry of Commerce here.

He was informed that on the import side, during the same period, there has been a contraction of 10.3% and imports have decreasing from $ 4,074 million to $ 3,653 million in October 2020.

The trade deficit shrank by -22.6% in October 2020 to $ -1,587 million, showing an improvement of $ 463 million over October 2019.

He was also briefed that during July-October 2020 the exports decreased only marginally by -0.1%.

The exports during this period stood at USD 7,540 million as compared to USD 7,547 million during the same period last year.

He was informed that, during July-October 2020, the balance of trade has witnessed a decline of -4.5% to USD 7,424 as compared to USD 7,776 million last year.

The Adviser expressed his satisfaction at the export trends and praised Pakistan’s exporters who made it possible for bringing the exports to pre-COVID-19 levels despite uncertainty and contraction in Pakistan’s major markets.

He was also briefed on the major export product trends and was informed that during July-October 2020, the export increases were mostly in the value added sectors.

The increases were witnessed in Home Textiles (10.0%), Women’s Garments (20.8%),  Jerseys & pullovers (35.3%),  Made-up articles of textile (10.4%), Stockings and socks (19.2%),  Cement (10.8%),  Pharmaceutical products (26.8%), Tarpaulins (66.8%), and Made-up clothing accessories (245.2%) as compared to the same period last year.

He was informed that, as compared to the same period last year, the export decreases during July-October 2020 were seen in mostly the non-value added sectors such as Cotton Fabric (-8.0%), Cotton yarn (-40.1%), Worn clothing (-63.6%), Raw Leather (-38.4%), Crude Petroleum (-53.7%), and Cotton (-95.7%).

The Adviser was also briefed on the geographical spread and growth of exports. He was informed that, as compared to the same period last year, Pakistan’s top five growing markets during July-October 2020 are Indonesia (39.3 %), Qatar (34.5 %), Denmark (24.9 %), S. Korea (22.5 %) and Afghanistan (15.6 %).

The Adviser expressed his hope that Pakistan economy will continue on its upward recovery trend and he directed that the officials of Ministry continue to proactively facilitate exporters and businessmen.

He further directed that no efforts should be spared to counter the effect of the second wave of COVID-19 in Pakistan’s major markets.

APP