Pakistan’s imports have gone up by 41.93 percent to $80.019 billion in FY2021-22 from $56.38 billion

in previous year.

ISLAMABAD    -    Pakistan’s trade deficit swelled to record high of $48.26 billion during previous fiscal year mainly due to massive increase in imports of the country.

The country’s trade imbalance was recorded at $48.26 billion in the year 2021-22 as compared to $31.076 billion in corresponding period of the previous year, showing massive growth of 55.29 percent, according to the latest data of Pakistan Bureau of Statistics (PBS). Pakistan’s imports have gone up by 41.93 percent to $80.019 billion in FY2021-22 from $56.38 billion in the previous year. Meanwhile, the country’s exports were recorded at $31.76 billion in year 2021-22 as compared to $25.304 billion in the previous year, showing growth of 25.51 percent.

On monthly basis, the trade deficit has increased by 16.48 percent in June 2022 as compared to its previous month of May. Trade deficit was recorded at $4.835 billion in June 2022 as against $4.151 billion in May. Imports were recorded at $7.722 billion in June 2022 as against $6.777 billion in the preceding month (May), showing an increase of 13.94 percent. On the other hand, exports have also enhanced by 9.94 percent to $2.887 billion in June this year from $2.626 billion in May 2022.

Trade deficit has gone beyond the target of $28.436 billion and recorded at $48.26 billion during the last fiscal year mainly due to massive increase in imports and surpass of exports target. The government had set imports target at $55.266 billion. However, it has gone to all time high of $80.019 billion during the fiscal year 2021-22. Meanwhile, the exports have gone beyond target of $26.83 billion and reached $31.76 billion in the previous fiscal year. According to the Economic Survey 2021-22, amidst the challenging present global environment, Pakistan’s external account also came under strain during FY2022 and the trade deficit widened substantially over last year. On one hand, export receipts and workers’ remittances both reached record-high levels. On the other hand, however, the import payments also registered a sizable, broad-based increase. As a result, the current account deficit widened considerably over last year. These payments pressured manifested on the interbank PKR-USD exchange rate which had massively depreciated during FY2022. The SBP’s FX reserves also came under pressure from second quarter onwards, dropping $5.9 billion during Jul-Mar FY2022 to $11.4 billion by end March 2022. The government in its Annual Plan 2022-23 had projected to reduce target deficit to $34.048 billion in the current fiscal year. The government would reduce the imports to $66.405 billion and increase the exports to $32.357 billion in the current financial year.

According to the PBS data, on annual basis trade deficit has widened by 33.42 percent to $4.835 billion in June 2022 from $3.624 billion in May 2021. Imports and exports both have recorded increase in June this year as compared to the same month of the last year. Imports have registered growth of 13.94 percent to $7.722 billion in June this year from $6.777 billion in the corresponding period of the previous year. Similarly, the exports have also shown growth of 9.94 percent to $2.887 billion in June 2022 from $2.626 billion in the same period of the previous year.