June trade deficit soars by 30.4 per cent despite annual improvement

KARACHI: Pakistan’s trade deficit saw a significant reduction of 12.3 per cent year-on-year (YoY) in the fiscal year 2023-24, dropping to $24.09 billion from $27.47 billion in the previous fiscal year, according to the latest data released by the Pakistan Bureau of Statistics (PBS).

This improvement was largely driven by a notable increase in exports, which rose by 10.5 per cent YoY to $30.65 billion in FY24, compared to $27.72 billion in FY23. Meanwhile, imports showed a slight decrease of 0.8 per cent, amounting to $54.73 billion for the year.

However, the trade deficit scenario for June alone painted a contrasting picture. The deficit for the month surged by 30.4 per cent YoY to $2.39 billion, up from $1.83 billion in June of the previous year.

On a month-on-month (MoM) basis, the trade deficit widened by 15.1 per cent compared to $2.08 billion recorded in May 2024.

June’s export performance showed a YoY increase of 7.3 per cent, reaching $2.53 billion compared to $2.36 billion in June 2023. However, on a MoM basis, exports fell by 10.9 per cent from $2.84 billion reported in May 2024.

On the import front, June witnessed a YoY increase of 17.4 per cent, with expenditures rising to $4.92 billion from $4.19 billion in the same month last year. Compared to May 2024, imports remained virtually unchanged, showing a marginal increase of 0.1 per cent MoM from $4.92 billion.

The mixed trade figures highlight the complexities of Pakistan’s economic landscape as the country navigates through fluctuating global market conditions.

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