Trade deficit for March down by 37% or $1.1bn
KARACHI: The trade deficit for March 2019 was reported at $1.9 billion, down by 37 per cent or $1.1 billion over corresponding period last year.
The deficit was led by declining imports while exports remained lackluster and saw slight decline.
During 2018-19, 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 per cent (or $1.3 billion) to $4 billion, which is around 28-months low.
The analyst believed that the primary reason 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 per cent to $2.1 billion in March 2019.
The analyst expects that both Textile and Food items that constitute over 70 per cent of exports have remained flat.
For the nine months 2018-19, the country reportedly posted trade deficit of $23.5 billion, down 14 per cent or $3.8 billion.
Imports for the 9-month period were reportedly down 8 per cent to $40.7 billion while exports were slightly up by 1.1 per cent to $17.1 billion.
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