Creeping forward: Figures show shrinking trade deficit

During July-November, the trade deficit shrunk by $452 million. PHOTO: FILE

ISLAMABAD: Pakistan’s trade deficit reduced to $7.8 billion in the first five months of the fiscal year as imports contracted marginally to $18.1 billion, while exports grew slightly to $10.4 billion.

According to the Pakistan Bureau of Statistics, as against a trade deficit of $8.2 billion in July-November period of the previous fiscal year, the deficit shrunk by $452 million and remained at $7.8 billion. In terms of percentage, there was a 5.5% reduction in the trade deficit.

The exports in the first five months of the fiscal year grew by 3.1%.

The export receipts were recorded at $10.4 billion in five months as against $10.1 billion in the corresponding period in the previous year, showing a net increase of $312 million.

Imports in this period contracted by 0.6%. The import bill stood at $18.2 billion for the five month period as against the previous year’s import bill of $18.3 billion, reflecting a reduction of $140 million in import bill in the five months.

The reduction of $452 million in the import bill will provide some relief to the government, as the country’s official foreign currency reserves stood at $2.9 billion as of December 6.