Pakistan’s trade deficit shrinks by 13.49%

WEB DESK: In a positive turn of events, Pakistan’s trade deficit showed improvement, recording a 13.49 per cent month-on-month (MoM) decline to $1.71 billion in February.

This is a notable improvement from the $1.98 billion deficit reported in January 2024, as per data released by the Pakistan Bureau of Statistics (PBS).

Comparing year-on-year (YoY) figures, there’s a promising trend with the trade deficit decreasing by 1.95 per cent YoY, marking a significant improvement from the $1.75 billion deficit recorded in February 2023.

Examining the cumulative performance for the first eight months of fiscal year 2023–24 (8MFY24), the trade deficit witnessed a substantial 30.18 per cent YoY reduction, amounting to $14.87 billion.

This is a significant improvement from the $21.23 billion deficit reported in the same period of the previous fiscal year (8MFY23).

Exports for the month of February experienced a 7.84 per cent MoM decrease, totaling $2.57 billion, compared to the $2.79 billion recorded in October 2023.

However, on a positive note, exports saw a substantial 17.54 per cent YoY increase compared to February 2023.

Conversely, the country’s import expenditure during February showed a promising 10.19 per cent MoM decline, settling at $4.29 billion compared to the $4.77 billion in the previous month.

Nevertheless, when compared to February 2023, imports saw an 8.89 per cent YoY rise, reaching $3.94 billion.

On a cumulative basis for 8MFY24, exports stood at $20.35 billion, while imports amounted to $35.22 billion.

This translates to a 9 per cent YoY increase in exports for the ongoing fiscal year, coupled with an 11.87 per cent YoY decrease in imports.

The overall result is a reduced trade deficit, signalling positive economic developments.

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