January 04, 2023 (MLN): Pakistan's merchandise trade deficit for the month of December 2022 clocked in at $2.85 billion compared to a deficit of $2.79bn in the preceding month, increased by 2.36% MoM, while on yearly basis, the deficit plunged by 41% YoY from $4.8bn in the same period last year, latest data issued by Pakistan Bureau of Statistics showed.
The decline in trade deficit is due to the falling imports as the import bill for the month of December stood at $5.16bn, showing a drop of 0.41% MoM and 32% YoY, reflecting the impact of import restrictions lately.
Amidst economic slowdown in the country’s major export market, energy shortages, and frequent closure of local manufacturing units, the exports registered a decrease of 3.64% MoM and 16.64% YoY to $2.3bn compared to $2.4bn in November 2022 and $2.76bn in December 2021.
Cumulatively, within 6MFY23, the trade deficit stood at $17.13bn, narrowed by 32.65% YoY compared to the deficit of $25.43bn recorded in the same period last year.
Since the government has lifted the ban on imports, the trade deficit may increase in months to come.
