EUR 8.54 For Business Accounts Only

Pakistan Economy: Mar 2019 Trade Deficit down US$1.1bn YoY

 

• As per news reports, trade deficit for Mar 2019 was reported at US$1.9bn, down 37% or US$1.1bn over corresponding period last year. This was led by declining imports while exports remained lackluster and saw slight decline. During FY19TD, March is the 4th consecutive month that has shown a marked decline in trade deficit led by declining imports while exports have remained flat.
• Imports for the month of Mar 2019 were reportedly down 24% (or US$1.3bn) to US$4bn, which is around 28-months low. We believe that the primary reasons for this decline is the currency devaluation and ongoing economic slowdown that has led to lower imports of Machinery, Food and Transport items. Oil imports have likely remained flat as even though oil sales in volume terms have come down, international oil price increase over last year has resulted in a flat or slightly higher dollar number.
• Exports continue to show lackluster performance and were reportedly down slightly by 4.5% to US$2.1bn in Mar 2019. We expect that both Textile and Food items that constitute over 70% of exports have remained flat.
• For the 9MFY19, the country reportedly posted trade deficit of US$23.5bn, down 14% or US$3.8bn. Imports for the 9-month period were reportedly down 8% to US$40.7bn while exports were slightly up by 1.1% to US$17.1bn.