ISLAMABAD: The trade deficit has skyrocketed in November as the merchandise trade deficit was recorded at $5.107 billion, bringing the total deficit to $20.746bn during the July-November 2021 period. The increase in imports, in comparison to exports, is the prime reason for the rise in the trade deficit.
The provisional data indicated that for the past five months the trade deficit has been growing exponentially. Import bill in November was $8.01bn, almost double of what it was in the same month last year.
The Federal Board of Revenue, however, has benefitted largely from the increase in imports through sales tax, customs duty and withholding tax. The trade deficit rose to 117.25pc during the initial five-month period of the current fiscal year.
According to the Finance Ministry, the Roshan Digital Accounts, substantial growth in exports and remittances could ease the burden.