Pakistan’s trade deficit shrinks over 34% to $11.15bn in 6MFY24

Pakistan’s trade deficit shrank 34.29% to $11.15 billion in 6MFY24 on account of significant reduction in imports, a consequence of administratively controlled measures, and a marginal improvement in exports.

The country’s trade balance, gap between exports and imports, was recorded at a deficit of $11.15 billion in July to December period of the year 2023-24 as compared to $16.97 billion in the same period of the previous year, according to data released on Tuesday by the Pakistan Bureau of Statistics (PBS).

In the period under review, imports saw a massive decrease while exports saw a marginal increase, which reduced the trade deficit.

Pakistan’s trade deficit narrows 34% to $9.38bn in 5MFY24

During 6MFY24, Pakistan’s exports increased by 5.17% to $14.98 billion from $14.24 billion in the corresponding period of the previous year.

Exports improved significantly by 22.2% to $2.8 billion in December 2023

On the other hand, imports fell by 16.3% to $26.13 billion in the July to December period, down from $31.21 billion in the same period of FY22.

Monthly figures

According to PBS, the country’s trade deficit shrunk by over 40% to $1.7 billion in December 2023 from $2.84 billion in the same period of the last year.

Exports improved significantly by 22.2% to $2.8 billion in December 2023 from $2.3 billion in same month of the previous year. On the other hand, imports reduced by 12.25% to $4.51 billion in December 2023 from $5.14 billion in the same month last year.

On a monthly basis, the trade deficit declined by 13.4%, as compared to $1.96 billion in November 2023.

The data showed that exports increased while imports posted a marginal decline monthly.

Exports improved by 9.3% when compared on a monthly basis to $2.57 billion in the preceding month of November. Meanwhile, imports reduced by 0.55% to $4.51 billion from $4.54 billion last month.