ISLAMABAD: The country’s trade deficit further shrank 11.03 per cent to $21.52 billion in 8MFY19, from $24.19bn in same period last year, reported the Pakistan Bureau of Statistics.

Similarly, during 8MF19, trade deficit declined 11.03pc to $21.52bn, as against $24 in corresponding months of last year. This decrease came on back of the steep decline in the overall import bill even though export proceeds posted a mixed trend.

Exports edged lower by 0.37 per cent year-on-year to $1.88bn in February due to the border tensions with India. The massive 33pc rupee devaluation since July 2018 coupled with cash assistance to major sectors, mainly textile and clothing wasn’t enough to boost the country’s exports as they grew a marginal 1.85pc to $15.11bn during 8MFY19, from $14.83bn in corresponding period last year.

Last month the government claimed that the impact of currency devaluation will be visible in the export trajectory, say that foreign sales will pick up momentum and imports will record steep decline in the months ahead.

The value of imported goods in the eight-month period was recorded at $36.63bn, down 6.13pc, from $39.02bn. The decline was even steeper in February, falling by 12.26pc to $4.18bn, from $4.76bn in same month last year.

According to the government, the decline in imports is mainly due to imposing of regulatory duties on imports of luxury items and automobiles. Moreover, government also slapped ban on import of furnace oil last month.

The Commerce Division claims that imports have began their downward journey due to a number of policy interventions by the government such as import contraction measures like regulatory duties (RDs) on non-essential items, improved energy supply, import substitution drive, economic stabilisation and currency devaluation.

Published in Dawn, March 13th, 2019