Pakistan’s March trade deficit swells to $2.17 billion

WEB DESK: Pakistan’s trade dynamics continue to fluctuate, with the latest data from the Pakistan Bureau of Statistics (PBS) revealing a significant increase in the trade deficit for the month of March 2024.

The deficit surged by 24.56 per cent month over month (MoM), reaching $2.17 billion, compared to February’s $1.74 billion.

This uptick in the deficit is even more pronounced when viewed on a year-on-year (YoY) basis, with a staggering 56.30 per cent increase compared to March 2023’s deficit of $1.39 billion.

However, amidst these fluctuations, there is a glimmer of hope as the cumulative trade balance for the nine months of fiscal year 2023-24 (9MFY24) shows a positive trend.

The negative trade balance reduced significantly by 24.94 per cent YoY to $17.03 billion, down from $22.69 billion in 9MFY23.

The performance of exports and imports has been a mixed bag. In March, exports experienced a marginal dip of 1.08 per cent MoM, amounting to $2.56 billion, compared to February’s $2.28 billion.

Nevertheless, on a YoY basis, exports saw a promising growth of 7.99 per cent compared to March 2023, reflecting a positive trend in the country’s export sector.

On the other hand, the country’s expenditure on imports during March surged by 9.25 per cent MoM, totaling $4.73 billion, up from $4.33 billion in the previous month.

Similarly, imports witnessed a substantial increase of 25.86 per cent YoY, reaching $3.76 billion, compared to March 2023.

Zooming out to a cumulative perspective, in 9MFY24, exports amounted to $22.91 billion, while imports stood at $39.94 billion.

Despite the challenges, there are some positive signs for Pakistan’s trade landscape.

Exports have seen a commendable increase of 8.93 per cent YoY in the ongoing fiscal year, while imports have declined by 8.65 per cent YoY, contributing to a reduced trade deficit.

These figures underscore the importance of closely monitoring Pakistan’s trade dynamics amidst global economic uncertainties.

As the country navigates through these challenges, policymakers and stakeholders will need to implement strategic measures to bolster exports, manage imports efficiently, and ultimately strengthen the nation’s economic resilience.