Pakistan’s trade deficit widens, reaches record level of $ 48.66 billion

Pakistan: Cash-strapped Pakistan’s trade deficit this financial year has increased to a record level of $ 48.66 billion. It was $30.96 billion a year ago. This is 57% more than the last one year. Which is the highest level ever. Pakistani media reports on Sunday said that the trade deficit has widened due to higher imports than expected. Let us tell you that the financial year of Pakistan is from July to June.

Despite the efforts of the government, the deficit increased

According to the report of ‘The Dawn’ newspaper, the Shahbaz Sharif government had banned the import of more than 800 non-essential luxury items in May. Despite this, the trade deficit has remained very high. The report further said that in the month of June, Pakistan’s trade deficit increased by 32% to $ 4.84 billion. It was $3.66 billion in the same month a year ago. The trade deficit for the fiscal year ended 2017-18 is much higher than the all-time high of $37 billion in 2017-18. At that time imports mainly increased through the China-Pakistan Economic Corridor.

Trade deficit was reduced in the financial year 2019-20

At the same time, the trade deficit narrowed to $31.8 billion in the financial year 2018-19. This was further reduced to $23.2 billion in 2019-20. The trade deficit again widened to $30.8 billion in 2020-21. Pakistan seems to be weakening economically since last few years. The debt on it is increasing continuously. Pakistan’s import bill has increased by 43.45 percent to $80.51 billion in 2021-22, from $56.12 billion a year ago. Pakistan has signed an agreement with the IMF on June 22 to restore the stalled USD 6 billion aid package and funding from other international sources to address the cash crunch. An Extended Fund Faculty Package of USD 6 billion for 39 months was also agreed in July 2019. Out of which only half of the fund has been refunded so far.