Trade Deficit increased to $3bn in July’2021

August 3, 2021

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Pakistan witnessed one of the highest Trade Deficit in the month of July’2021 as it stood at $3.058bn, rising by 81% from July’2020.

The Increased deficit is mainly due to a large increase in imports without a corresponding increase in exports from the country.

According to preliminary foreign trade data for the first month of the current fiscal year (2021-2022), imports totaled $ 5.405 billion, up from $ 3.687 billion in July 2020, representing a significant increase of 46.6 percent, or $ 1.718 billion.

Imports increased by 10.69% from last month.

Trade Ministry data showed that the trade deficit nearly doubled in July to $ 3.058 billion from $ 1.686 billion in July 2020.

The increase in imports is also associated with the rise in world oil prices. And while exports have not kept pace with growing imports, the rise in remittances is likely to provide some cushion to bridge the External deficit.