Pakistan’s two-month trade deficit widened 120% to $7.5 billion after imports saw a new historic peak but exports plunged for the third successive month despite heavy subsidies being given to exporters and significant currency devaluation.
The external trade figures released by the Pakistan Bureau of Statistics (PBS) at the weekend have torpedoed two-month old balance of payments projections given in the Annual Plan 2021-22. The government had shared the plan with the parliament at the time of announcing the budget.
Pakistan’s trade deficit – the gap between imports and exports – increased to $7.5 billion during July-August period of fiscal year 2021-22, the national data collecting agency stated. The deficit was $4.1 billion or 120% more than the comparative period of the previous fiscal year.
The trade deficit trend suggests that the deficit by June next year would be far higher than the targeted $28.4 billion by the government. The two-month deficit was already equal to 26% of the target.