On Wednesday, Pakistan’s trade slippage posted double-digit rise as it widened by 21.6 per cent to $23.83 billion in the 10 months of 2020-21 from $19.59bn over the corresponding period last year, Pakistan Bureau of Statistics (PBS) data showed.
The trade gap has been widening since December 2020. The surge in trade deficit is mainly led by exponential growth in imports with comparative slow growth in exports proceeds from the country.
In FY20, the country’s trade deficit had narrowed to $23.099bn from $31.820bn. However, this target was now crossed in 10 months of FY21, indicating a serious pressure on external side due to rising imports.
In April 2021, the trade deficit ballooned by 33.24pc to $2.99bn as against $2.24bn over the corresponding month of last year.
Imports jump 17.67pc and exports 13.49pc in July-April FY21
On a month-on-month basis, it dipped by 9.14pc.
The import bill is rising mainly due to the increase imports of petroleum, wheat, sugar, soybean, machinery, raw material & chemicals, mobiles, fertilisers, tyres and antibiotics and vaccines.
The import bill is constantly on the rise for the past few months.