COVID-19 has pushed the global economies towards a recession. The synchronized nature of the downturn has amplified domestic disruptions around the globe. Globally, trade contracted by close to –3.5% (year over year) in the first quarter, reflecting weak demand, the collapse in cross-border tourism, and supply dislocations related to shutdowns (exacerbated in some cases by trade restrictions). Pakistan has also been affected by the unprecedented health and economic shocks caused by the outbreak of Coronavirus with smart lockdown. During the current fiscal year, Pakistan’s economy has undergone a sharp contraction with a growth of -0.38%. Cognizant of the extended duration and uncertainty of the COVID-19 worldwide, the government of Pakistan has chalked out sector-specific policy interventions and structural reforms to cope with the situation. Government is constantly monitoring the international and domestic conditions to ensure stabilization to stir growth in this challenging environment.
Pakistan’s trade deficit witnessed significant reduction during the FY2019-20, declining by 27.12% as compared to the previous year. The Country’s trade deficit during FY2019-20 stood at $23.180 billion against the deficit of $31.805 billion during FY2018-19.
During FY2019-20, country’s exports registered approximately 6.81% decline, falling from $22.958 billion last year to $21.394 billion during the current year, whereas the imports decreased from $54.763 billion to $44.574 billion, showing a sharp decline of 18.6%.
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