ISLAMABAD: The widening trade deficit of the country has started shrinking due to a decrease in imports and growth in exports.
The trade deficit has decreased by 5 percent to $16.8 billion in July-December 2018 as compared to $17.7 billion in July – December 2017.
The overall imports from July-December 2018 have decreased over 2 percent from $28.7 Billion in July – December 2017 to $28 Billion in July – December 2018. This trend is even more pronounced in respect of imports under RD regime, where the import value has declined from $5.2 Billion in July – December 2017 to $4.4 Billion in July – December 2018, showing a contraction of 16% (effective on 1994 tariff lines).
The trade deficit in December 2018 dipped by 19 percent to $2.3 Billion from $2.9 Billion in December 2017.
In December 2018, the imports in the US$ term declined to $4.3 billion compared to $4.9 billion in December 2017 which reflects an import compression of over 12 percent.
The measures taken by the government in the supplementary budget have started showing their impacts. This declining import is a reflection of this trend.