August trade deficit widens massive 133pc YoY

ISLAMABAD: The country’s trade deficit has ballooned by 133 per cent to $ 4.055 billion in August 2021 from $ 1.740 billion in August 2020.

According to provisional trade figures, imports of first two months (July-August) of 2021-22 reached $ 11.911 billion as compared to $ 6.994 billion in the corresponding period of 2020-21, posting a growth of over 70 per cent.

Last month, Prime Minister Imran Khan had directed the Commerce Ministry to check the increase in the import of non-essential items.

Exports constituted a growth of over 28 per cent to $ 4.597 billion during the first two months, i.e. July-August 2021-22, as compared to $ 3.581 billion in the same period of FY 2020-21.

July trade deficit widens by whopping 85.53pc YoY

Exports posted a negative growth of over 3.5 per cent to $ 2.257 billion in August 2021 as compared to 2.340 billion in July 2021, and rose by 42.5 percent against August 2020 with $ 1.584 billion.

Imports posted a growth 90 per cent to $ 6.313 billion in August 2021 as compared to $ 3.324 billion in the same period last year. “Our exports have grown by 43 per cent to $ 2.257 billion as compared to $ 1.584 billion. Growth was affected by shipments ‘delays due to rains,” said Razak Dawood, Advisor to Prime Minister on Commerce and Investment.

Commerce Ministry says that exports for August 2021 are short by $ 143 million of monthly target of $ 2.4 billion for the month. The main reason for the increase in imports is the hike in international oil prices in August, import of commodities, raw materials and machinery.

However, the ministry is analysing the data.

Copyright Business Recorder, 2021