Pakistan's trade deficit has increased to $6.290 billion during the first two months of the current fiscal year (July-August 2017), according to Pakistan Bureau of Statistics (PBS). The trade deficit for the first two months is higher by 33.52 percent over $4.711 billion for the same period a year before and it is a major concern for the government as it poses serious threat to the balance of payment position deteriorating in the recent months.
Prime Minister Shahid Khaqan Abbasi has recently chaired a meeting of challenges to the balance of payment position (BoP) due to soaring trade deficit. Sources in the Prime Minister Office told Business Recorder that the Prime Minister had taken briefing on PM incentives Package of Rs 180 billion for the textile sector to ameliorate the sliding exports. However, the outcomes of the package, whatsoever reason may be, were not encouraging and the Prime Minister directed Ministry of Commerce to bring the textile package with improvement in the next meeting of the Economic Coordination Committee (ECC) of the Cabinet.
Provisional trade data released by the PBS for July-August 2017 noted 11.80 percent increase in exports and 24.85 percent increase in import during the period. The exports increased to $3.497 billion during July-August 2017 as compared to $3.128 billion for the same period a year before while imports surged to $9.787 billion from $7.839 billion.
The trade deficit was recorded at $3.423 percent during the month of August 2017, higher by 29.17 percent over $2.650 billion for the same months a year ago owing to increase in imports. An increase of 25.17 percent in exports and 27.63 percent in imports was recorded during the period of August 2017 over the same month of last fiscal year. Exports increased to $2.069 billion in August 2017 as opposed to $1.653 billion for the same month a year before while imports soared to $5.492 billion from $4.303 billion.
The country's trade deficit during August 2017 over previous month of July was stated at $3.423 billion, 6.84 percent higher over $3.204 billion. An increase of 26.85 percent was noted in exports during the month of August 2017 over July 2017 with exports increasing to $2.609 billion from $1.631 billion while there was an increase of 13.59 percent in imports with imports going up to $5.492 billion in August 2017 from $4.835 billion in July 2017.
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