Karachi, May 29, 2020 (PPI-OT): Trade deficit increased 18% MoM in Apr-2020
In Apr-2020, the goods’ trade deficit increased further by 18% MoM to US$1,767mn. While imports declined by 5% MoM, exports crashed by 24% MoM during the same period, leading to the jump in the trade deficit.
All sub-categories of exports saw a decline during the month; however, it was textiles – the largest group within exports – which contributed most significantly to the drop in overall exports.
The reduction in imports was marginal by comparison, as the contraction in machinery, textiles and other imports was offset by higher imports of petroleum, metals and transport.
For 10MFY20, the trade deficit has declined by 29% YoY due to a 17% YoY drop in imports, where the reduction in petroleum imports has been the most significant contributor.