Trade Deficit with major trading partners reduces during 6MFY20

January 22, 2020 (MLN): Among Pakistan’s top trading partners, USA remained the top export destination for Pakistani products during the Jul-Dec FY20 as its share of imports in Pakistan's overall exports accounted for 17% i.e. $2.2 billion, up by 3% YoY as compared to the corresponding period of last year.

According to the country-wise data released by State Bank of Pakistan (SBP), China was in second place as its imports accounted for 8% of Pakistan's exports during the period under review. China imported $936.8 million worth of goods and services from Pakistan, as compared to $889.6 million worth of goods imported in the same period of last year, depicting an increase of 8% YoY.

This was followed by UK and UAE as Pakistan shipped $863.34 million worth of exports to the UK, which was down by 4% YoY and $827.7 million worth of exports to UAE which was 30% higher when it compared with the figures of Jul -Dec 2019.

Region-wise, North America and Western Europe emerged as the top regions where Pakistan shipped the bulk of its exports. Pakistan’s exports to North America during the period stood at $2.2 billion while exports to Western Europe recorded at $1.7 billion.

With regards to Pakistan’s imports, the detailed analysis of the data revealed that during the period Pakistan imported $4.87 billion worth of goods and services from China which was 22% of Pakistan’s total imports. In Jul- Dec 2019, total imports from China recorded at $5 billion, showing a decline of 4% YoY. This suggests that Pakistan’s trade deficit with China clocked in at $3.94 billion, showing a slight decline of 5% YoY.

UAE was the second major import origin for Pakistan during the period as the country imported $3.64 billion worth of items which was 29% lower than what Pakistan imported in the corresponding period of the last year. The decline in imports from the UAE reduced Pakistan’s trade deficit with the UAE by 37% YoY.

This was followed by Singapore, as the total imports from the country stood at $1 billion, showing a decline of 46% YoY. As a result, the trade deficit with Singapore shrank by 48% YoY as it reduced to $2.8 billion from $4.4 billion recorded in Jul-Dec 2019.

Positively, the data shows that during the first six months of FY20, Pakistan’s trade deficit with most of the countries shrank as compared to the same period prior year.

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