ISLAMABAD: Pakistan’s 10-month (July-April) trade gap widened 64.8 per cent to a massive $39.26 billion, indicating that pressure is mounting on the country’s external balances with each passing day, as per data released by the Pakistan Bureau of Statistics (PBS).
Outflow from the economy (deficit) is much higher than what overseas Pakistanis are sending back to their families each year in the form of remittances.
Consequently, this deficit would put pressure on Pakistan’s balance of payment position in the months to come, resulting in further depreciation of the rupee that may stoke inflation, forcing the central bank to further tighten its monetary policy.
During the first ten months of the ongoing fiscal year 2021-22, imports surged to a whopping $65.5 billion, while exports clocked in at $26.23 billion, the PBS reported.
In the same period of the last fiscal, imports stood at $44.73 billion and exports at $20.91 billion. This translates into a 25.46 per cent growth in exports and a 46.4 per cent increase in imports.