Pakistan’s trade deficit shrank 30% to $14.87 billion during July-February (8MFY24) on account of a considerable reduction in imports and an increase in exports, data released by the Pakistan Bureau of Statistics (PBS) showed on Friday.

The country’s trade balance, gap between exports and imports, was recorded at a deficit of $14.9 billion in July to February period of the year 2023-24 as compared to $21.3 billion in the same period of the previous year.

During 8MFY24, Pakistan’s exports increased by 9% to $20.35 billion from $18.67 billion in the corresponding period of the previous year.

Pakistan’s trade deficit contracts 33% to $13.2bn in 7MFY24

On the other hand, imports fell by 11.87% to $35.22 billion in the July to February period, as compared to $39.97 billion in the same period of FY22.

Monthly figures

According to the PBS, the country’s trade deficit shrunk marginally by 1.95% to $1.71 billion in February 2024 from $1.75 billion in the same period of the last year.

Exports improved significantly by 17.54% to $2.57 billion in February 2023 from $2.19 billion in the same month of the previous year. However, imports also spiked by 8.89% to $4.29 billion in February 2024 from $3.94 billion in the same month last year.

On a month-on-month basis, trade deficit decreased by 13.49%, as compared to $1.98 billion in January 2023.

The data showed both exports and imports decreased, however, the decline in imports was more pronounced on a monthly basis.

Exports declined by 7.84% when compared monthly to $2.79 billion in the preceding month of January. Meanwhile, imports decreased by 10.19% to $4.29 billion from $4.77 billion last month.