Federal government has taken several measures to discourage imports of unnecessary and luxury items due to which the trade deficit
has dropped by 31.82billion dollars.
beat the target mainly due to the disappointing export of goods, which slipped to $24.21 billion against expectation for around $28 billion, after the central bank let the rupee depreciate 32% to Rs160.05 against the US dollar in FY19.
With $20 billion exports and $ 44.033 billion imports, Pakistan's goods deficit
reached at $23.934 billion in July-April of FY2019 as compared to $ 25.813 billion trade deficit
in same period of previous fiscal year.
SBP said trends in government borrowing showed a widening fiscal deficit
during the first nine months of the fiscal year.
The huge current account deficit
in the last fiscal year has proven to be a challenge for the economy, and the incumbent government, after taking power shifted its entire focus to fill up the gap.
The average monthly deficit
under the Trump administration -- $117 billion -- is now higher than both the average monthly deficits
in former president Barack Obama's second term and in his first term when the government had to contend with the tough job of recovering from the Great Recession of 2008.
The BSP said the higher deficit
was partly because of higher merchandise trade deficit
in the first quarter due to the sustained rise in imports of raw materials and intermediate goods as well as capital goods to support domestic economic expansion.
The BSP blamed the October deficit
on outflows stemming mainly from payments made by the national government for its foreign exchange obligations, NG's net foreign currency withdrawals and foreign-exchange operations of the BSP.
In comparison with 2016, the deficit
fell by 1.44 percentage points, according to current Eurostat figures.
Yet, the interagency Development Budget Development Committee (DBCC) would retain the budget deficit
ceiling equivalent to 3 percent and 3.2 percent of gross domestic product (GDP) respectively in 2018 and 2019, Diokno said.
The official said a depreciating rupee and high crude import bill would definitely put pressure on the country's current account deficit
(CAD), and a fiscal slippage at this juncture would lead to a twin deficit