FY21: Trade Deficit Widens by 82.2%

During the first eight months (July – February) of the current fiscal year 2021-2022, Pakistan’s trade commerce deficit has grown by 82.2%. The Pakistan Bureau of Statistics (PBS) released the data showing trade deficit has hit a whopping $31.959 billion compared to $17.535 billion of the same timeline in 2020-21. With respect to the PBS monthly summary on foreign trade statistics for February 2022, the exports of the country have increased by 25.8%, maintaining its position at $20.547 billion for the first eight months of the fiscal year 2021-22.

The PBS statistics have also confirmed that the country’s trade deficit swelled by 22.1% on a year-on-year basis which shows the jump of $2.533 billion to $3.095 billion in February 2021 to the same time in 2022. This shows an increase of 9.69%. Meanwhile, the imports declined by 2.2% on a month-on-month basis and maintained the status of $5.903 billion in February 2022 as compared to $6.041 billion in January 2022.

Will it have a positive impact on the country’s economy?