Pakistan’s trade deficit did not narrow considerably and stood at $4.85 billion in December 2021 compared to $4.9 billion in November 2021 despite massive devaluation of the exchange rate, higher policy rate, imposition of letter of credit margins, and other measures. Imports shed 3.82 percent and stood at $7.597 billion in December 2021 compared to $7.889 billion in November 2021, not indicating significant drop in the numbers. “It’s a worrisome matter for the economic and trade managers that despite massive adjustments and measures, the imports are not declining,” top official sources confirmed to The News on Wednesday. Strangely, Adviser to Prime Minister on Commerce Abdul Razzak Dawood had claimed couple of days ago that imports decreased by $1 billion in December 2021 compared to November 2021, but data proved it wrong. In the first half (July-December), the trade deficit rose sharply and doubled by touching $25.478 billion against $12.344 billion in the same period of the last fiscal year 2020-21, witnessing a surge of 106 percent. Pakistan’s exports fetched $15.1 billion in the first six months of the current fiscal year compared to $12.1 billion in the same period of the last fiscal, registering a growth of 24.7 percent. On the other side, the imports stood at $40.5 billion in the first half of the current fiscal against $24.454 billion in the same period last fiscal, registering an increase of 69.9 percent.
“It is worrisome that the trade deficit was not narrowing down despite massive adjustments made by the government and the State Bank of Pakistan,” sources wishing not to be named said, adding that the accelerated pace of imports would take time to slowdown, and “more steps were required to tapper down the imports”. The Ministry of Commerce had earlier stated on January 3, 2021 in its official press statement that a consultative meeting was chaired by the commerce adviser to discuss trade trends in December 2021. The adviser was informed that according to the provisional pre-PBS data, Pakistan’s exports during December 2021 increased by 16.7 percent to $2.761 billion as compared to $2.366 billion in December 2020, showing an increase of almost $400 million. He was informed that the export target for the month was $2.8 billion. Further, the adviser was told that imports have started to decline, and that during December 2021, imports shed $1 billion to stand at $6.9 billion down from $7.9 billion in November 2021. He was also informed that the import projection for December 2021 was $6.2 billion. On year-on-year basis, it was said that imports increased by 37.9 percent to $6.901 billion, as compared to $5.005 billion in December 2020. During the first half of the current fiscal, exports increased by 25 percent to $15.125 billion, as compared to $12.110 billion in July-December 2020. The export target for the first half of the current fiscal was $15 billion; the adviser was informed that the target was achieved.