We spent less on imports this quarter
Pakistan’s trade deficit has fallen by 33.52% in the first four months of the current fiscal year in comparison to the same time last year, according to recent figures by the Pakistan Bureau of Statistics.
This means the country has saved over $3.9 billion–the difference between the trade loss from the first quarters of last year and this year.
Trade deficit figures for the current fiscal year’s first quarter stood at $7.77 billion compared to the $11.69 billion that was recorded in 2018. This means we saved $3.9 billion or cut our losses down by 33.52%.
A trade loss or gap is the difference between how much we spend on imports and exports. Pakistan spends more imports than it exports, which means we spend more money than we earn. But according to these new figures, we’re cutting how much we spend on things. However, this only means we’re cutting imports heavily, it doesn’t mean we’re exporting more.
Earlier this week, Prime Minister’s Adviser for Commerce and Investment Abdul Razak Dawood said at a convention that Pakistan’s trade deficit was reducing. He said the country’s rating on World Bank’s index had improved, and according to the IMF, Pakistan was moving in the right direction on the economic front.
He claimed that the trade deficit will “substantially reduce” by June next year. Razak also urged investors to bring investments to Pakistan.