By Irfan Ahmed ISLAMABAD, June 10, (INP-WealthPK): The trade deficit of Pakistan has expanded by a big margin of 57.85% after a long period, casting a negative impact on the external sector of the country, WealthPK reports. The increase in trade deficit is attributed to the rising imports, which climbed significantly during the first 11 months of the current fiscal compared to the same period of the previous year. The country’s trade deficit widened by 57.85% and reached $43.334 billion during the first 11 months of the current financial year, according to the Pakistan Bureau of Statistics (PBS). The country’s exports increased by 27.78% and remained at $28.848 billion in the first 11 months of the current fiscal compared to $22.576 billion during the same period of the previous financial year. However, the imports climbed by 44.28% in the first 11 months of the current fiscal and reached $72.182 billion, up from $50.028 billion in the same period of the previous financial year. Source: PBS website/WealthPk research The country’s trade deficit widened by 6.90% on a month-on-month basis, and reached $4.043 billion in May 2022, against $3.782 billion in April 2022. On the other hand, imports decreased by 0.52% in May 2022 and reached $6.644 billion from $6.679 in April 2022. Furthermore, exports also decreased by 10.22% in May 2022 and reached $2.601 billion from $2.897 billion in April 2022. Source: PBS website/WealthPk research However, on a year-on-year basis, the trade deficit widened by 11.50% in May 2022 and climbed to $4.043 billion from $3.626 billion in May 2021. The imports also registered an increase of 25.43% on a year-on-year basis, and jumped from $5.297 billion to $6.644 billion. The country’s exports witnessed an increase of 55.66% and reached $2.601 billion in May 2022 as compared to $1.671 billion in the same period of last year. The country witnessed the highest-ever trade deficit of 43.334$ billion during the first 11 months of the current fiscal year. The recent hike in prices of crude oil and the increase in local demand hinder the trade balance, as the import bill is expected to stay high. However, inflation in the country has reached its peak now and it would decline in the coming months along with imports and trade deficit, according to experts. To minimise the import bill, the government has banned imports of luxury items. It will help in balancing the position of payments. The government has decided that the prohibition will not apply to the imports in rupees or through barter mechanism by land routes. An official of the Federal Board of Revenue told WealthPK that ban on imports of luxury items would curtail the monthly import bill by $280 million to $300 million. “However, this saving is hardly five percent of the monthly import bill of $6.6 billion,” he added. As part of an emergency plan to stabilise the national economy, Pakistan has imposed a complete ban on the import of more than three dozen non-essential luxury commodities. The incumbent government has taken these steps to minimise the country’s reliance on luxury imports and strengthen the national economy.