Pakistan’s trade deficit deteriorates further

By Hamza Ameer Islamabad, March 4 : Pakistan’s economic situation continues to worsen with each passing month as the country’s exports have plunged for a successive second month to slightly over $2 billion in February 2021.
As per the Pakistan Bureau of Statistics (PBS), contrary to over 4 per cent contraction in exports, the imports increased one-tenth to $4.6 billion last month on an annualised basis, which resulted in further widening of trade deficit by almost 24 per cent in February 2021 on a year-to-year basis.
Economists say that the latest plunge has proven that the recent peak in exports was the result of some external factors and policy measures, which includes 30 per cent currency devaluation.
“The gap between imports and exports increased to $2.5 billion in February over a year ago, a jump of $486 million of 24 per cent”, maintained PBS.
Exports had started picking up early in the current fiscal year and peaked up to $2.4 billion in December, prompting a celebratory response from the ruling government.
However, the short-term achievement proved to be adversely affective as the exports again started falling down previous historic band of around $2 billion.