ISLAMABAD
Pakistan’s 10-month (July-April) trade gap widened 64.8% to a massive $39.26 billion, indicating that pressure is mounting on the country’s external balances with each passing day, The News reported, citing data released by the Pakistan Bureau of Statistics (PBS).
Outflow from the economy (deficit) is much higher than what overseas Pakistanis are sending back to their families each year in the form of remittances.
Consequently, this deficit would put pressure on Pakistan’s balance of payment position in the months to come, resulting in further depreciation of the rupee that may stoke inflation, forcing the central bank to further tighten its monetary policy.
During the first ten months of the ongoing fiscal year 2021-22, imports surged to a whopping $65.5 billion, while exports clocked in at $26.23 billion, the PBS reported.
In the same period of the last fiscal, imports stood at $44.73 billion and exports at $20.91 billion. This translates into a 25.46% growth in exports and a 46.4% increase in imports.
The trade gap has widened by 64.8%, or $15.43 billion, from the corresponding period of the last fiscal year.
Goods exports in April 2022 picked up the pace and rose 29.5% to $2.873 billion from $2.218 billion in the corresponding month a year ago, while imports rose by 26.2% to $6.615 billion from $5.24 billion in April 2021.
