Business

Trade deficit recedes by 30pc in July-Nov as imports dip

Published

2 years ago

Farwa

Imports drop by 20.15% in July-November.
33.6% imports dip in November 2022.
Services trade deficit receded by 38%.

ISLAMABAD: The country’s trade deficit in the first five months of ongoing fiscal year 2022-23 fell by 30.14% to $14.4 billion due to a drop in non-essential imports, The News reported Friday.

According to the monthly trade bulletin of the Pakistan Bureau of Statistics (PBS), the imports in July-November dropped by 20.15% to $26.34 billion from $32.98 billion in the same period last year.

However, exports were also reduced by 3.5% in the same period to $11.93 billion against $12.36 billion in the same period last year, the PBS said Thursday.

Compared to November 2021, Pakistan imported 33.6% fewer goods and sold 18.3% fewer products abroad in November 2022. In November 2022, exports dropped by 18.34% to $2.37 billion from $2.9 billion in the same month in 2021, while imports dropped 33.6% to $5.245 billion from $7.9 billion in November 2021.

The trade deficit was narrowed by 42.46% to $2.88 billion from $4.99 billion in the same month last year.

A downward trend has been witnessed in the import bill since the beginning of the current fiscal year as imports fell by 10.4% in July, 7.7% in August, 19.7% in September, 27.2% in October and 33.6% in November over their respective corresponding months of 2021, PBS trade bulletin revealed.

Comparing monthly trade performance with the previous month (October), goods exports in November 2022 fell 0.63% from $2.38 billion last month, while imports increased 11.34% compared to October’s $4.7 billion.

Experts predict the export bill might not touch the $29 billion threshold in 2022-23. The average monthly exports in the first five months of the fiscal year are $2.386 billion. The export growth has been affected by local constraints and the slowdown of world economies. Economic policies such as costly bank financing, rupee devaluation, and expensive input costs alongside political instability have played a significant role in the export drop.

It is pertinent to mention that in the last fiscal 2021-22, the economy accumulated a record-high trade deficit of $48.38 billion, registering over a 31% upsurge over the fiscal year 2020-21.

Trade in Services

The PBS also issued economic performance data on trade in services with other countries. The services trade deficit receded by 38% to $812 million against $1.31 billion a year ago in the first four months of the fiscal year. From July to October, services exports increased by 3.97% to $2.26 billion, and imports dropped by 11.8% to $3.1 billion.

Services exports in October 2022 increased by 1.14% to $559 million, while imports dropped by 26% to $730 million against exports of $553 million and imports of $986 million in October 2021. Yearly, the services trade deficit lowered by 60.55% to $171 million in October 2022 against $433 million in October 2021.

PBS data shows that the services exports declined by 2.1% and imports by 1% over the previous month. In September 2022, Pakistan earned $571 million by selling its services abroad, while local businesses hired services worth $737 million from overseas service providers, registering a $166 million deficit.

Business

The amount of trade between Saudi Arabia and Pakistan hits $700 million.

Published

7 hours ago

Farwa

Through the Special Investment Facilitation Council (SIFC), Pakistan’s trade connections with Saudi Arabia have grown significantly, with bilateral trade volume rising from $546 million to $700 million and exports to the Kingdom growing by 22%.

As bilateral economic cooperation continues to grow, Saudi investors have shown a strong interest in Pakistan’s construction, energy, agricultural, and information technology sectors. The objective for exporting IT services between the two countries has been raised from $50 million to $100 million.

Saudi Arabia has set up a help desk dedicated to making it easier for Pakistani IT companies to register in the Kingdom in order to expedite commercial procedures. The goal of this program is to speed up economic collaborations between the two countries and lower administrative barriers.

The well-known Saudi restaurant chain AlBaik has revealed plans to open locations in Pakistan, which is a big step for the food service industry and should lead to the creation of new job possibilities in the area.

Officials have noted that stronger business links between the two countries lead to greater economic stability, and the SIFC has played a crucial role in promoting these trade advancements. For bilateral trade and investment projects, the Council remains a crucial facilitator.

According to a trade official with knowledge of the developments, “the establishment of dedicated support mechanisms, such as the help desk for IT companies, demonstrates a commitment to long-term economic partnership,” The goal of these programs is to improve the conditions for commercial collaboration between the two nations.

The increasing amount of trade and the diversity of investment sectors show that Saudi Arabia and Pakistan’s economic ties are changing as both countries seek to deepen their business alliances in a number of industries.

Business

After more than 50 years, Bangladesh and Pakistan resume direct trade.

Published

7 hours ago

Farwa

After more than 50 years, the two governments will resume direct bilateral trade, with Bangladesh’s food ministry announcing Sunday that it will receive a supply of 25,000 tonnes of rice from Pakistan next month.

After former Prime Minister Sheikh Hasina was overthrown last August, relations between Bangladesh and Pakistan have begun to improve after decades of tense relations.

Since then, there have been increased bilateral interactions between Bangladesh and Pakistan. Nobel laureate Muhammad Yunus, the interim government’s senior adviser, has met twice with Pakistani Prime Minister Shehbaz Sharif.

According to the food ministry, Dhaka completed an agreement earlier this month to import grains from Pakistan.

“On March 3, the first shipment of 25,000 tonnes will reach Bangladesh,” Zia Uddin Ahmed, a ministry assistant secretary, told Arab News.

“This is the first time that Bangladesh has started importing rice from Pakistan at the government-to-government level since 1971.”

Following direct maritime contact between the two South Asian countries in November—a Pakistani cargo ship stopped in Bangladesh for the first time since 1971 with imports and exports arranged by private companies—their trade relations grew.

Resuming trade with Pakistan is a significant step for Bangladesh, according to Amena Mohsin, a lecturer at North South University and a specialist in international relations.

“We want to see progress in our bilateral relationship with Pakistan. Most significantly, we are currently going through a low point dispute with India, even though we constantly diversify our partnerships.

This most recent move to purchase rice from Pakistan is really significant in this context,” she told Arab News.

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

3 days ago

Farwa

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.