Pakistan Trade deficit registers significant increase
Pakistan’s trade deficit went up by 19.5% to $2.39 billion during September 2020 as compared to $2 billion in the same period in 2019.
The uptick in the trade deficit was seen due to a 13.2% year on year increase in imports to $4.26 billion in September 2020 as compared to $3.76 billion in the same period last year. However, exports saw an increase of 6.1% to $1.87 billion during September 2020 as compared to $1.76 billion.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities while commenting on the trade figures said:
The double-digit growth in imports is expected as economic activity resumes and aggregate demand increases. However, a sustained double-digit would be hard to sustain given the paltry growth in exports.
Dr. Aadil Nakhoda, an economist and Assistant Professor at IBA, Karachi, told ProPakistani:
Volatility seems to be the name of the game during this recovery. The uncertainty will remain. However, the uptick in import figures shows that demand-side effects are also in play. Maybe it is linked with the improved confidence levels in recent survey figures.