Trade deficit falls by 33.5% during July-Oct of FY19-20
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Over the first four months of fiscal year 2019-20, the country's trade deficit decreased significantly by 33.5 per cent, a report by the Ministry of Commerce revealed on Saturday.
Trade deficit fell from $11.7 billion recorded from July-October of FY18-19 to $7.8bn during the same period this year.
The decrease in trade deficit can largely be attributed to a fall in imports, which recorded a decline of 19.3pc. Imports during the period of July-October 2019 amounted to $15.3bn as opposed to $19bn during the same period last year.
Exports, meanwhile, saw a meagre rise of 3.6pc and grew from $7.3bn to $7.5bn.
During the month of October, trade deficit fell by 32pc and was recorded at $1.97bn as opposed to last year's $2.9bn.
Exports in the month of October of the current fiscal year increased by 6pc, rising from $1.9bn to $2bn. Imports fell by 17pc and were recorded at $3.9bn as opposed to $4.8bn from last year.
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On DawnNews
Comments (59) Closed
Nov 02, 2019 01:29pm
Exports Increased ?
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Nov 02, 2019 01:41pm
We pray for improvement in Trade sectors of Pakistan.
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Nov 02, 2019 01:42pm
This means either most of the stuff being imported was junk or is being produced locally. Which is correct?
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Nov 02, 2019 02:02pm
Excellent. Step one, stop importing like kings. Step two, start manufacturing using CPEC. On plan.
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Nov 02, 2019 02:04pm
Overall trade is falling. Without trade what impact a big country can make in improving economy, people lives or make an impact on geo politics
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Nov 02, 2019 02:12pm
Yes trade deficit is down but the common man has no money to eat. So nothing to be proud off.
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Nov 02, 2019 02:17pm
The fundamentals need to be right. Everything is being put in place after years of corruption and damage.
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Nov 02, 2019 02:25pm
"the country's trade deficit decreased significantly by 33.5 per cent, a report by the Ministry of Commerce revealed on Saturday."
By having deferred oil payment facility, its more like having household items on credit while presuming that my expenses decreased.
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Nov 02, 2019 02:27pm
sign of slowing economy
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Nov 02, 2019 02:31pm
Great news for the economy.
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Nov 02, 2019 02:43pm
What is missing from the news is that the imports are down owing to people losing their purchasing power in other things except the basic necessities of life to survive. One has to keep in mind the fact that the country's people are not afforded the luxuries of being supplied pocket monies plus five times foods during the day at subsidized rates like our worthy parliamentarians.
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Nov 02, 2019 02:50pm
Falling trade deficit could be good for political claim, but is economy really growing ? Is our exports increasing ? One sided fall in import would just lead to reducing tax collection, slowing down of economy and unemployment. Reducing import would be good only if we are achieving production of import substitute, but neither that is happening nor exports are growing. What does this KPI then means for health of the economy ?
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Nov 02, 2019 03:12pm
One should understand that in the current environment, economy of a country is first targeted before dismantling and thrashing the state. Examples, Egypt, Libya, Iraq. Think!
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Nov 02, 2019 03:22pm
Someone send these numbers to Maulana pls.
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Nov 02, 2019 03:23pm
Excellent trend. Pakistan Zindabad
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Nov 02, 2019 03:24pm
This means the economy is shrinking.
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Nov 02, 2019 03:42pm
Export stagnant, import reduced. Good going
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Nov 02, 2019 03:50pm
Just making fool to it's own people, reduction in import will bring manufacturing down so in future the export will also go down and unemployment will increase, now thing is there any good here
If trade defecit had went down because of export that should have benefitted the citizen
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Nov 02, 2019 03:57pm
Fall in import means that people will not be getting the materials they are used to and hence those materials will become costly. Imagine impact of reduced crude oil imports and it's effect on petrol prices.
Increasing exports is a positive sign while reducing imports is a negative sign for filling the trade gap.
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Nov 02, 2019 04:07pm
This is great news. This should encourage sale of local products and solutions. Trade barriers are going up all over the world. Countries are trying to reduce trade deficits by imposing tarrifs. Pakistan has achieved the objective without resorting to any such means. This is wonderful.
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Nov 02, 2019 04:07pm
Imports less as more imports and less exports for us is causing a deficit. So it's time to consume more home made products. Cut the deficit it's a must. We can work on more exports by first all the extra imports must end until we get a surplus trade or at least balanced trade of import/exports. Well done PTI. Thank you PM Khan on the right track.
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Nov 02, 2019 04:24pm
The government is buying oil from Saudi on yearly credit for 3 billion dollars. Then how come they say the deficit is reduced which is not including the crude oil import??
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Nov 02, 2019 04:28pm
The exports can rise phenomenally if exporters have right sales people pitching for sales in foreign countries. At present, many products pakistan has to sell are not even seen in international markets or stores. Secondly, every exporter should implement quality control on his products.
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Nov 02, 2019 04:57pm
Economy is on the right track thanks to some tough decisions by the PTI govt. Few more years of hardships and we will definitely get out of the mess created by previous rulers. Stay strong people of Pakistan.
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Nov 02, 2019 05:06pm
Good job PMIK.
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Nov 02, 2019 05:08pm
Imports fell because businesses are shutting down and rise in exports was almost nothing despite one third reduction in the value of the rupee. The country lost $141 billion in wealth during the year according to Credit Suisse report on global wealth. That is bigger corruption than the sum total of all corruption by all other politicians in the history of the country.
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Nov 02, 2019 05:29pm
even meager still the exports are growing on monthly basis, which is a very good sign
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Nov 02, 2019 05:29pm
Not many people in this country understand that how the government is sacrificing its political capital and facing the wrath of the people just to make amends in the economy which was destroyed by the Sharifs in the last two years of their tenure. Do they know that, had this government followed the footsteps of MLN government, the people would surely had been happy but the country would then had to borrow 35 billion USD every year. Sure, the inflation and the interest rates are high but these are a by-product of cutting down on imports and both the deficits. The nation needs to show patience for a year or so to restart the growth after adjustments being made.
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Nov 02, 2019 05:38pm
State policies are showing improvements.
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Nov 02, 2019 05:40pm
In this phase, Pak will take 100 years to repay debt and to normalcy.
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Nov 02, 2019 05:41pm
Unlikely to improve, oil imports and generators will bring a record high imports in the next few months...
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Nov 02, 2019 06:02pm
IK Government has now partly corrected the finances of this country.Our Hawala or illegal transfer of FE has considerably declined due to the stringent action and no mega corruption in Last one year thus increase in official home remittance comparing to previous period
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Nov 02, 2019 07:07pm
This is not something to be proud of- what dropping imports really mean is that no one trusts the currency of Pakistan and wants to sell anything to Pakistan. What slow/no growth of exports means that your industries aren't producing goods and services that other nations want to buy. Consequence- trade will come to a grinding halt in 3 quarters.
Factories will shut, jobs will be lost, goods will not be produced and inflation on essential commodities will skyrocket. Prepare yourself.
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Nov 02, 2019 07:29pm
Its because imports went down! How pakistan impirt without money :)
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Nov 02, 2019 08:00pm
Looks Good...
With remittances BoP look more manageable
But does import slow down signify slowing CPEC
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Nov 02, 2019 08:06pm
The result of PTI Government's austerity measures have started producing results. These efforts will start producing benefits for poor during a year or so provided opposition parties will not destroy for political gains
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Nov 02, 2019 08:14pm
@Abbas shah, yes good point
keep on praying
Prayers are badly needed and only thing that may work
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Nov 02, 2019 08:15pm
who cares that imports have gone down and not many goods are available for common people
who cares that we have not substantially increased our exports
who cares that we are headed for blacklist
we stand with people of Kashmir but not sure how long we can even stand up given dismal state of economy
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Nov 02, 2019 08:43pm
It is good sign, actually free imports by N.S govt which was actually a conspiracy of big players. The imports were financed by taking loans on heavy interest from outside of the country. The imports raised to 60 billion dollars whereas imports decreased to 18 billion dollars due to hidden hands helped by DAR. causing foreign reserves to critically dangerous levels of 15 billion dollars. The Bangla Desh reserves are at 40 billion dollars with excellent performance of their exports fully helped by their bearucracy.
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Nov 02, 2019 08:52pm
Trends seems to be showing positive.
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Nov 02, 2019 09:02pm
Excellent news for the overall economy of the country.
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Nov 02, 2019 09:07pm
At least exports didn’t drop. Non oil exports in India have contracted 1.6% on the other hand.
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Nov 02, 2019 09:31pm
Imran inherited a country which was bankrupt with 60 billions in loan and no money even to pay debt.
Imran Khan is doing a great job. An honest PM- ever.
Nawaz and Zardari 40 years rule, looted billions made palaces in Dubai and UK and hiding money in outside banks. Both should pay back every dollar or stay in jail for life,
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Nov 02, 2019 09:57pm
Decrease in trade deficit because of decrease in imports and not much increase in exports is not a matter to celebrate. This means the economy is shrinking and would result in job loss, inflation
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Nov 02, 2019 10:04pm
Very good data. Do more(?) to bring the trade deficit around 10 percent of total debt. I can see the PAK. Rupee is improving. Do not loose steam.
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Nov 02, 2019 11:45pm
This remarkable achievement and crucial economic and fiscal milestone is probably lost on the ignorant throngs who are causing havoc and trash all over ISB these days.
Reduction in trade deficit as a result of reduced imports and/or rising exports is a good sign of the strength and recovery of the economy. This is how the government is going to build the foreign cash reserve and reduce the crucnch of foreing currencies needed to pay for imports.
Most of the imports of items out of the reach of ordinary Pakistanis is simply not advisable in a country with massive poverty and local industries suffering due to foreign competition. iPhones, Luxury cars, gourmet food, and fashion brands should be discouraged, if not banned altogether to allow local industry to flourish.
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Nov 03, 2019 12:38am
Increase productivity and concentrate more on export related goods and industries. Invest heavily in those sectors. High volume and low margins is the key. Side by side improve trading sector. Industrial output for domestic and export sector should increase substantially in coming year. Pakistan needs to have vast industrial base and small and medium industries is the key.
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Nov 03, 2019 12:46am
Fall of imports is generally a bad sign. It typically means that the economy is slowing.
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Nov 03, 2019 01:07am
India releases new map with new UT and still these guys are not worrying about their own country.
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Nov 03, 2019 02:06am
Great news. Pakistan is finally on the right track
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Nov 03, 2019 02:38am
Good sign for Pakistan. Reduce your imports as much as possible and increase your exports. That's the secret recipe of countries like China, Japan and Germany.
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Nov 03, 2019 02:39am
Very good news. This should boost domestic producers.
This is the time to take advantage of Pakistani currency depreciation and boost export.
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Nov 03, 2019 03:34am
When you are left with nothing to export and no money to import, trade deficit reduces to zero! So right KPI should be used to make things look beautiful!
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Nov 03, 2019 03:55am
Good sign in trade deficit and circular debt. Need to improve export of standard quality manufactured goods to compete in the open market. Agricultural products should meet the national consumer market first to make sure the public can afford to buy food at reasonable and affordable price.
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Nov 03, 2019 04:56am
Software presents a biggest opportunity for growth. Not freelancing which amounts to a modern day slavery - as was being pushed by previous Government. PTI-Government should encourage SAAS model.
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Nov 03, 2019 05:36am
Trade deficit down because the economic growth has come to a grinding halt. This would have been good news if the trade deficit had gone down due to an increase in exports.
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Nov 03, 2019 06:47am
@Abbas shah, you have to act smart and do hard work too. This Pakistani notion of a maseeha will change all fortunes or just praying, this won't suffice.
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Nov 03, 2019 08:34am
The decrease in trade deficit can largely be attributed to JUI-F chief Maulana Fazlur Rehman. Not.
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Nov 03, 2019 09:09pm
It also means 33% import did not happened due to poor economy and affordability
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