ISLAMABAD: The country witnessed trade deficit of $4.8 billion in first two months of the fiscal year – higher by $1.1 billion over the same period of the last fiscal year, reported the Pakistan Bureau of Statistics (PBS).
Worker remittances also contracted 3.1% in the July-August period to just $3.1 billion, reported the State Bank of Pakistan on Friday, but figures for August remained higher year-on-year.
However, the dip in the two leading sources of external accounts could be a worrying sign for the country’s economic managers. This will deepen dependence on external borrowings to balance the books.
Receipts from exports slipped to $3.13 billion in July-August period – as much as 8.2% or $280 million less than the receipts in the comparative period of the last fiscal year, according to figures released by the PBS.
In contrast to contraction in exports, imports saw a growth of 10.3% as payments against goods increased to $7.9 billion – $738 million more than the payments made in July-August of last year.
Resultantly, the trade deficit in the first two months of the new fiscal year 2016-17 widened 27.3% to $4.8 billion – $1.1 billion more than the one posted in the comparative period of the previous fiscal year.
