Pakistan’s Import Bill Declines by Massive $3 Billion in First Month of FY23

Pakistan’s imports declined by 38.31 percent to $4.861 billion in July 2022 on a month-on-month (MoM) basis against $7.880 billion in June 2022. According to official data from the Pakistan Bureau of Statistics (PBS), the country’s trade deficit narrowed by 20.6 percent in July 2022 on a year-on-year (YoY) basis and remained $2.642 billion in July 2022 as compared to $3.235 billion in July 2021. Trade deficit narrowed by 18.33 percent on year on year (YoY) basis and remained $2.642 billion in July 2022 compared to $3.235 billion in July 2021. On a YoY basis, imports declined by 12.8 percent in July 2022 and remained at $4.861 billion compared to $5.575 billion in July 2021. Pakistan’s exports declined by 5.17 percent on a YoY basis as exports remained at $2.219 billion in July 2022 compared to $2.340 billion in July 2021. While the export numbers are concerning for an already beaten economy, Pakistan’s import bill reduction is in line with market projections of a more than $2 billion decrease in goods imported from overseas channels. At the time,  the Minister for Finance, Miftah Ismail, explained that this reduction in imports was realized by creating a balance between imports and exports. The Pakistan Bureau of Statistics (PBS) monthly summary of foreign trade statistics for June 2022 showed that the country’s trade deficit widened by 33.41 percent on a YoY basis, jumping from $3.624 billion in June 2021 to $4.835 billion in June 2022. The imports registered an increase of 21.57 percent on a YoY basis and jumped from $6.352 billion in June 2021 to $7.722 billion in June 2022. The trade deficit reached $48.259 billion in FY 2021-22 against $31.076 billion during the same period of 2020-21.