Pakistan’s trade deficit falls 18.6 per cent in November on export gains

ISLAMABAD: Pakistan’s trade deficit shrank 18.6 per cent year-on-year (YoY) in November, driven by a surge in exports and a dip in imports, according to the latest data from the Pakistan Bureau of Statistics (PBS).

The monthly shortfall stood at $1.589 billion, a notable decrease from the $1.952 billion deficit recorded in the same month last year.

However, on a month-on-month basis, the trade deficit witnessed a small increase of 0.19 per cent, edging up from $1.586 billion recorded in October.

For the first five months of the ongoing financial year, the cumulative trade deficit contracted by 7.39 per cent, totalling $8.651 billion, compared to $9.341 billion during the corresponding period of the previous fiscal year.

Exports showed robust growth in November, rising 8.98 per cent year-on-year to $2.804 billion, compared to $2.573 billion last year in November. Despite this annual increase, exports slipped 5.97 per cent month-on-month from October’s $2.982 billion figure.

On the import side, the country’s expenditure dropped by 2.92 per cent year-on-year in November, reaching $4.393 billion, down from $4.525 billion in November 2023. Compared to the previous month, imports declined 3.83 per cent, from $4.568 billion in October.

The narrowing trade deficit suggests improved trade dynamics, with the rise in exports contributing to a more favourable balance, despite the modest increase in the shortfall on a monthly basis.

The drop in imports reflects a softer demand for foreign goods, aligning with the government’s efforts to manage the balance of payments.

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