ISLAMABAD: Pakistan’s trade deficit narrowed down by 34.29 percent in the first half (July-December) of the current fiscal year 2023-24 as it stood at $11.148 billion compared to $16.965 billion during the same period of last fiscal year, says the Pakistan Bureau of Statistics (PBS).

The monthly data released by the bureau noted that the country’s exports increased by 5.17 percent ($737 million) to $14.981 billion during July-December 2023-24 compared to $14.244 billion in the corresponding period of the last fiscal year.

Imports declined by 16.28 percent to $26.129 billion during the first half of the current fiscal year as compared with $31.209 billion in the same period of the last fiscal year.

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

On a month-on-month basis, the trade deficit narrowed by 13.43 percent to $1.702 billion in December 2023 when compared to $1.966 billion in November 2023. Exports recorded a 9.29 percent increase to $2.812 billion in December 2023 when compared with $2.573 billion in November 2023. Import decreased by 0.55 percent to $4.514 billion in December 2023 when compared with $4.539 billion in November 2023.

The trade deficit narrowed by 40.13 percent on a year-on-year basis and stood at $1.702 billion in December 2023 compared to $2.843 billion during the same month of 2022.

The imports decreased by 12.25 percent on a YoY basis and remained $4.514 billion in December 2023 compared to $5.144 billion in December 2022. The exports increased by 22.21 percent on a YoY basis and remained $2.812 billion in December 2023 compared to $2.301 billion in December 2022.

Caretaker Federal Minister for Commerce and Industries and Production Dr Gohar Ejaz told Business Recorder that this is record growth in the past four months. When the caretaker government took over, the last month’s exports were $2.07 billion. These now stand at $2.81 billion. Pakistan’s exports have recovered and are on a clear upward trajectory, reaching an impressive $2.8 billion in December 2023.

“We will reach our targeted capacity of $3 billion per month soon. Our ultimate goal remains achieving export-led growth to the tune of $8 billion per month, a target that we will pursue through the implementation of the new Industry Policy under the Special Investment Facilitation Council (SIFC) framework,” Dr Ejaz added.

“Ministry of Commerce remains committed to further strengthening Pakistan’s export potential and creating a conducive environment for sustainable economic growth. These positive developments are a testament to the government’s ongoing efforts and the resilience of Pakistani businesses,” said Dr Ejaz.

Copyright Business Recorder, 2024