Pakistan records 33% reduction in trade deficit, boosted by export surge

ISLAMABAD: In a promising economic development, Pakistan witnessed a significant 33 per cent reduction in its trade deficit, reaching $13.167 billion during the first seven months of the fiscal year 2023–24 (7MFY24), as reported by the Pakistan Bureau of Statistics (PBS) on Friday.

Comparing the trade balance between exports and imports, the deficit stood at $13.16 billion for the July–January period, marking a noteworthy improvement from $19.55 billion recorded in the same timeframe of the previous fiscal year.

The key factors contributing to this positive trend were a substantial decline in imports and a commendable increase in exports.

Imports during 7MFY24 decreased by 14.11 per cent, totaling $30.94 billion, compared to $36.03 billion in the corresponding period of FY22.

Meanwhile, exports experienced a robust growth of 7.89 per cent, reaching $17.78 billion from $16.48 billion in the prior year.

Analysing the monthly figures for January 2024, the trade deficit further contracted by 24.8 per cent, settling at $1.95 billion compared to $2.59 billion in January 2023. Exports surged by an impressive 24.72 per cent, reaching $2.79 billion, while imports slightly decreased by 1.84 per cent, totaling $4.74 billion during the same period.

Despite the overall positive trend, there was a 6.5 per cent increase in the trade deficit on a month-on-month basis compared to December 2023.

Exports decreased by 1.13 per cent, amounting to $2.82 billion, while imports showed a slight improvement of 1.87 per cent, rising from $4.65 billion to $4.74 billion.

Earlier in the week, Caretaker Minister of Commerce Dr. Gohar Ejaz celebrated the year-on-year increase in exports during January, expressing optimism for the country’s economic trajectory.

This encouraging data reflects a resilient economic landscape for Pakistan, as efforts to boost exports and manage imports yield positive results, fostering a more balanced trade scenario.

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