Import compression: Pakistan’s trade deficit narrows 42% to $5.29bn in 3MFY24

Pakistan’s trade deficit narrowed by 42.25% to $5.29 billion in 3MFY24 mainly due to a massive reduction in imports, a direct result of administratively-controlled measures.

The country’s trade balance, gap between exports and imports, was recorded at a deficit of $5.29 billion in July to September period of the year 2023-24 as compared to $9.16 billion in the same period of the previous year, according to data released on Monday by the Pakistan Bureau of Statistics (PBS).

Both exports and imports reduced in the period under review. However, imports fell more than exports, which reduced the trade deficit.

During 3MFY24, Pakistan’s exports reduced by 3.8% to $6.9 billion from $7.17 billion in the corresponding period of the previous year despite massive currency depreciation.

On the other hand, imports fell by 25.4% to $12.19 billion in the July to September period, down from $16.33 billion in the same period of FY22.

Monthly figures

According to the PBS, the country’s trade deficit shrunk by nearly 48% to $1.489 billion in September 2023 from $2.856 billion in the same period of the last year.

Exports improved marginally by 1.1% to $2.47 billion in September 2023 from $2.44 billion in September of the previous year. Similarly, imports reduced by 25.5% to $3.95 billion in September 2023 from $5.29 billion in the same month last year.

On a monthly basis, the trade deficit declined by 31.5%, as compared to $2.16 billion in August 2023.

The data showed exports increased 4.2% to $2.47 billion in September from $2.37 billion in the preceding month of August. Meanwhile, imports have reduced by 12.9% to $3.95 billion from $4.53 billion in the last month.