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Major dip in exports and imports in July shrinks trade deficit

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1 year ago

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  • Pakistani exports and imports fell by double digits in July.
  • July trade bulletin reveals goods exports amounted to over $2bn. 
  • Decline partly attributed to import ban to manage dollar shortage.

ISLAMABAD: Pakistani exports and imports fell by double digits in July, registering a major decline as compared to the previous month, The News reported, citing the Pakistan Bureau of Statistics (PBS) data.

As per the PBS data, the exports dropped 12.7% in the first month of the current fiscal, while the month-on-month drop was 8.6%.

PBS data showed that imports also witnessed a substantial decrease of 13.75% compared to the previous month and 26.4% compared to the same month a year ago.

The trade bulletin for July 2023 revealed that goods exports amounted to $2.057 billion, down from $2.356 billion in June 2023 and $2.25 billion in July 2022. Meanwhile, goods imports in July 2023 were valued at $3.66 billion, down from $4.2 billion in June 2023 and $4.98 billion in July 2022.

This decrease in imports helped reduce the trade deficit by 41.2% to $1.61 billion in July 2023 compared to $2.73 billion in July 2022.

In June 2023, the trade gap was $1.86 billion.

The decline in imports was partly attributed to the government’s decision to ban several luxury items in an effort to manage the dollar shortage in the economy.

Throughout the fiscal year 2022-23, the country saw a significant reduction in the trade deficit, which shrunk by 43% to $27.55 billion, down from $48.35 billion in the previous fiscal year. During the same period, total exports declined by 12.7%, reaching $27.7 billion, while imports shrank by 31%, amounting to $55.3 billion.

The PBS also reported the services trade performance data for July-June 2022-23. According to the trade statistics for international services during this period, local companies imported more services than they exported.

The trade deficit in services witnessed a remarkable decrease of 87.7%, reaching $719.4 million in FY23 compared to $5.84 billion in FY22.

In FY23, the economy hired the services of foreign companies for $8.02 billion and exported services abroad for $7.3 billion. 

In FY22, the country’s services exports were recorded at $7.1 billion, and imports stood at $12.9 billion, representing an increase of 2.78% in services exports and a 38% decline in imports.

In June 2023, services exports were valued at $571 million, while imports amounted to $655 million, resulting in a deficit of $84 million. In May 2022, exports were recorded at $607 million, imports at $903 million, and the deficit at $296 million. 

During the month under review, services exports decreased by 5.9%, and imports decreased by 27.5% compared to the previous month. Comparing June 2023’sservices to the trade performance of the same month the previous year, exports were down by 14%, and imports shrunk by 50.7%.

In June 2022, services exports amounted to $664 million, and imports reached $1.328 billion, resulting in a deficit of $664.9 million.

In June 2023, the services trade deficit was recorded at $84 million, marking a reduction of 87.4% compared to the corresponding month of the previous year.

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With its second-largest surge ever, PSX approaches 114,000 points.

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Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

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In interbank trade, the Pakistani rupee beats the US dollar.

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1 week ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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