EUR 4.42 For Business Accounts Only

Intermarket Pulse: Pakistan now imports more machinery than oil

• Pakistan’s trade deficit in May’17 clocked in at US$3.5bn, up 61%YoY, taking 11MFY17 deficit to US$30bn, up 42%YoY. Exports in May’17 fell by 11%YoY to US$1.6bn (down 3%YoY in 11MFY17 to US$18.5bn); meanwhile, imports surged by 28%YoY to US$5.1bn during the month under review (up 21%YoY in 11MFY17 to US$48.5bn).

• In 11MFY17, major contribution to rise in imports came from Food items (US$5.7bn, up 16%YoY), Machinery (US$10.9bn, up 40%YoY), Automobiles (US$3.0bn, up 22%YoY), Petroleum products (US$9.9bn, up 33%YoY), and Metals (US$4.0bn, up 8%YoY).

• Remittances in May’17 recovered well (up 21%MoM and 4%YoY), supported by Ramadan related flows, in our view. In 11MFY17, however, remittances are down 2%YoY to US$17.4bn on account of drag from flows from US (down 3%YoY), UK (down 8%YoY) and Saudi Arabia (down 7%YoY).