Karachi, September 25, 2019: Pakistan’s Trade deficit in Aug-2019 declined by US$700 million (30 percent) YoY as imports declined by 22 percent (US$982 million) YoY while exports saw a 14 percent (US$281 million) dip over the same period.
This shrinking of the import-bill can be traced back to significant declines in imports of petroleum products (US$400 million or 29 percent YoY) and Agri & Other Chemicals (US$160 million or 21 percent YoY).
On a sequential MoM basis, the US$225 million (12 percent) decline in the trade deficit in Aug- 2019 can be attributed to a 22 percent fall in imports of Agri & Other Chemicals and a 20 percent MoM decline in Machinery imports.
During 2MFY20, the trade deficit cumulatively shrunk by US$2,217 million (38 percent) YoY mainly on the back of a significant YoY fall of US$1,216 million (38 percent) in import of petroleum products.
We feel obligated to point out that exports showed dismal performance as they declined by 18 percent/14 percent MoM/YoY in Aug-2019 across all categories with Textile exports at the forefront. During 2MFY19, exports dipped by 3 percent YoY, again with Textiles in the lead with a US$54mn fall YoY.