August 2, 2022 (MLN): Pakistan's merchandise trade deficit for the month of July 2022 clocked in at $2.64 billion compared to a deficit of $4.96bn in the preceding month, narrowed by 46.77% MoM, latest data issued by Pakistan Bureau of Statistics showed today.
Compared to the same month last year, the trade deficit shrank by 18.4% from $3.23bn, as imports decreased by 12% YoY to $4.86bn.
Meanwhile, the exports have dropped by 24% MoM to $2.21bn compared to $2.91n in June 2022. Similarly, on yearly basis, the exports moved down by 5.17% from $2.34bn in July 2021.
In terms of Rupees, exports from Pakistan during July 2022 amounted to Rs489.62bn as against Rs596.44bn in June 2022 and Rs373.41bn in July 2021, showing a decline of 17.91% over last month and 31.21% over the same period last year.
On the other hand, imports in July 2022 dipped by 38.31% MoM, clocking in at $4.86bn compared to $7.88bn in the previous month. While compared to the corresponding month previous year, the imports showed a decline of 12.81% from $5.57bn reported in July 2021.
In Rupee terms, imports into Pakistan during the month under review amounted to Rs1trillion as against Rs1.61tr in June 2022 and Rs890bn during July 2021, indicating a slump of 33.40% MoM over last month while on yearly basis, it showed a jump of 20.53% YoY.
The decline in exports would remain the major concern for the economic managers.
Since imports have been plummeted significantly in July, the current account deficit may see a notable correction.
However, slower imports will likely trim revenue collection from customs group, hinting slower economic growth, and lower consumption of products owing to higher prices.
