Pakistan’s trade deficit contracted over 12% to $24.09 billion during fiscal year 2023-24 (FY24) due to a considerable increase in exports and a marginal dip in imports, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.

The country’s trade balance, gap between exports and imports, has been recorded at a deficit of $24.09 billion in July to June period of 2023-24 as compared to $27.47 billion in the same period of the previous year.

Exports increased substantially while imports saw a marginal decline, which reduced the trade deficit.

During FY24, Pakistan’s exports increased by 10.54% to $30.65 billion, up from $27.72 billion in the corresponding period of the previous year.

On the other hand, imports declined by 0.84% to $54.73 billion in FY24, as compared to $55.19 billion in FY23.

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

Monthly figures

According to the PBS, the country’s trade deficit, however, increased significantly by 30.39% year-on-year to $2.39 billion in June 2024 from $1.83 billion in the same period of 2023.

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

Exports improved by 7.3% to $2.53 billion in June 2024 from $2.36 billion in the same month of the previous year. On the other hand, imports increased significantly by 17.43% to $4.92 billion in June 2024 from $4.2 billion in the same month last year.

Moreover, on a month-on-month basis, trade deficit increased notably by 15.13% to $2.39 billion as compared to $2.07 billion in May 2024.

The data showed exports decreased significantly while imports remained largely stable.

Exports declined by 10.92% to $2.53 billion when compared monthly to $2.84 billion in the preceding month of May. Meanwhile, imports inched up by 0.08% to $4.92 billion from $4.91 billion last month.