Trade deficit shrinks by 33 percent to $7.78 billion in four months.

Byline: Imran Ali Kundi

ISLAMABAD -- Pakistan's trade deficit contracted by over 33 percent in four months (July to October) of the current fiscal year due to the continuous reduction in imports and increase in exports of the country.

The country's trade deficit was recorded at $7.78 billion in July to October period of the year 2019-20 as compared to $11.7 billion in the same period of the previous year. Trade imbalance has shrunk by $3.92 billion in one year, according to the data shared by Adviser to Prime Minister on Commerce and Textile Abdul Razak Dawood. He said that trade statistics for July-October indicate that annual trade deficit may decrease by $12 billion to $19 billion (from $31 billion) in the current fiscal year.

'This coupled with workers' remittances will positively address out current account deficit woes,' he said on his social media account. He said that for the first time in last 15 years, exports are rising and imports are decreasing simultaneously. The increase in export is even more significant in terms of quantities-showing increase production and economic activity in export oriented sectors.

The data showed that Pakistan's exports have recorded minor growth of 3.6 percent in four months despite getting incentives from the government. The country's exports registered at $7.53 billion in July-October period of the current financial year as compared to the $7.27 billion in the corresponding period of previous year. On the other hand, the government has successfully controlled the soaring imports of the country. Imports have declined by 19.3 percent in the period under review. Pakistan has imported goods worth of $15.31 billion in July-October of 2019-20 as compared to $18.97 billion in the same period of last year. The incumbent government has taken...