TRADE deficit narrowed 9.66 percent to $19.264 billion in the first seven months of the current fiscal year as exports continued to show upward trend, while imports declined. According to data released by Pakistan Bureau of Statistics (PBS), trade deficit amounted to $21.324 billion in the July-January period of the last financial year. Exports rose 2.24 percent to $13.231 billion as trade incentives and tariff concessions coupled with rupee depreciation encouraged export sector to increase shipments.
It is, perhaps, for the first time that some positive report has emerged on the economic front in several months and augurs well for overall economic and fiscal condition of the country. The positive development shows the policies of the PTI Government have started paying dividends and the country can come out of troubled waters if these are sustained. Experts say trade deficit can definitely be narrowed down further if the Government acts boldly to discourage import of luxury items and those that are manufactured in Pakistan. All countries of the world protect their local industries and this pays in the long run in terms of increased economic activity, job opportunities and enhanced exports. Import of plant and equipment is understandable but some countries have made Pakistan as a dumping ground for their products and this trend should be checked on an urgent basis. Instead of robbing Pakistani people and industry of the subsidies, there is logic to increase duties and taxes on import of luxury items. Similarly, about two percent increase in exports was negligible and the Government should attract local and foreign investment in different sectors of economy to accelerate the pace of economic activities and industrialization to create necessary surplus for exports.\
Source: https://pakobserver.net/trade-deficit-narrows/