Islamabad, April 9, 2019: Pressure on Pakistan’s external account is likely to ease in coming days at trade deficit continued downward journey during March 2019.
Topline Research report revealed on Tuesday that Pakistan’s trade deficit for Mar 2019 was reported at $1.9 billion, down 37
Pakistan’s trade deficit for Mar 2019 was reported at $1.9 billion, down 37 percent or US$1.1 billion over the corresponding period last year supported by lower import bill, Topline Research report revealed on Tuesday.
According to analysts the massive decline in trade deficit led by declining imports while exports remained lackluster and saw slight decline. During the first nine months of this fiscal year (9MFY19), March is the 4th consecutive month that has shown a marked decline in trade deficit led by declining imports while exports have remained flat.
Imports for the month of Mar 2019 were reportedly down 24 percent or US$1.3 billion to $4 billion, which is around 28-months low.
Analysts at Topline Research believed that the primary reasons for this decline is the currency devaluation and ongoing economic slowdown that has led to lower imports of Machinery, Food and Transport items.
Oil imports have likely remained flat as even though oil sales in volume terms have come down, international oil price increase over last year has resulted in a flat or slightly higher dollar number.
Exports continue to show lackluster performance and were reportedly down slightly by 4.5 percent to $2.1 billion in Mar 2019. It is being expected that both Textile and Food items that constitute over 70 percent of exports have remained flat.
For the 9MFY19, the country reportedly posted trade deficit of $23.5 billion, down 14 percent or $3.8 billion. Imports for the 9-month period were reportedly down 8 percent to $40.7 billion while exports were slightly up by 1.1 percent to $17.1 billion.