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

Pakistan’s trade deficit shrank 33.59% to $9.38 billion in 5MFY24 on account of a significant 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 $9.38 billion in July to November period of the year 2023-24 as compared to $14.28 billion in the same period of the previous year, according to data released on Friday 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.

During 5MFY24, Pakistan’s exports increased by 1.93% to $12.17 billion from $11.94 billion in the corresponding period of the previous year.

Exports improved significantly by 7.66% to $2.57 billion in November 2023 from $2.39 billion in same month of the previous year

On the other hand, imports fell by 17.3% to $21.55 billion in the July to November period, down from $26.06 billion in the same period of FY22.

Monthly figures

According to PBS, the country’s trade deficit shrunk by nearly 32% to $1.89 billion in November 2023 from $2.77 billion in the same period of the last year.

Exports improved significantly by 7.66% to $2.57 billion in November 2023 from $2.39 billion in same month of the previous year. On the other hand, imports reduced by 13.5% to $4.46 billion in November 2023 from $5.15 billion in the same month last year.

On a monthly basis, the trade deficit declined by 13.2%, as compared to $2.17 billion in October 2023.

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

Exports narrowed by 4.4% to $2.57 billion in November from $2.69 billion in the preceding month of October. Meanwhile, imports have reduced by 8.3% to $4.46 billion from $4.86 billion in last month.