Pakistan’s trade deficit shrank 15.25% year-on-year (YoY) during July-May (11MFY24) due to a reduction in imports and an increase in exports, data released by the Pakistan Bureau of Statistics (PBS) showed on Monday.

The country’s trade balance, gap between exports and imports, has been recorded at a deficit of $21.73 billion in July to May period of 2023-24 as compared to $25.64 billion in the same period of the previous year.

Imports reduced while exports saw a notable increase, which reduced the trade deficit.

Pakistan’s trade deficit shrinks 18% YoY to $19.5bn in 10MFY24

During 11MFY24, the country’s exports increased by 10.65% to $28.07 billion from $25.37 billion in the corresponding period of the previous year.

On the other hand, imports declined by 2.37% to $49.8 billion in the July to May period, as compared to $51.01 billion in the same period of FY23.

Monthly figures

According to the PBS, the country’s trade deficit marginally increased by 0.14% year-on-year to $2.11 billion in May 2024 from $2.10 billion in the same period of 2023.

Both exports and imports increased in May 2024, however, the jump in exports was more pronounced.

Exports increased by 27.08% to $2.8 billion in May 2024 from $2.2 billion in the same month of the previous year. On the other hand, imports rose by 13.89% to $4.9 billion in May 2024 from $4.3 billion in the same month last year.

Pakistan’s trade deficit shrinks 25% to $17.03bn in 9MFY24

Moreover, on a month-on-month basis, trade deficit decreased by 15.43% to $2.1 billion as compared to $2.5 billion in April 2024.

The data showed both exports and imports increased on a monthly basis.

Exports increased by 18.76% to $2.79 billion when compared monthly to $2.35 billion in the preceding month of April. Meanwhile, imports drifted higher by 1.16% to $4.9 billion from $4.85 billion last month.