Pakistan’s trade deficit has increased 8.27 percent to $14.96 billion in the first seven months of 2020-21 from $13.82 billion over the corresponding period in 2019, Pakistan Bureau of Statistics (PBS) data revealed, reported 24NewsHD TV channel on Tuesday.

The trade deficit is the amount by which the cost of a country's imports exceeds the value of its exports. The positive trend is mainly driven by an increase in imports especially of raw materials and semi-finished products for use in domestic industries. 

It is pertinent to note that the trade gap has been widening since December 2020.

In January, it increased by 21.03pc to $2.60 billion as against $2.14 billion over the corresponding month of last year. However, it declined by 1.44pc on a month-on-month basis.

In FY20, the country’s trade deficit had narrowed to $23.099 billion from $31.820 billion.

Reportedly, Federal Minister for Planning Asad Umar said that a rise in the trade deficit was expected because of growth in the large-scale manufacturing sector.