Trade deficit halves from $48b in FY2022 to $24 in FY2024

ISLAMABAD: The Ministry of Commerce has submitted the details of the trade deficit of the last five years to the National Assembly (NA).

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The documents submitted to the parliament show that there was a total trade deficit of $154 billion during the last five years. Total exports clocked in at $136 billion during the last five years, with imports totaling at $291 billion during the same time period.

The main reason for the increase in imports is economic growth, the document showed.

Moreover, the breakdown of the trade deficit shows that it has halved in the past three years. In fiscal year 2020 (FY2020), the trade deficit was $23.16 billion; in FY2021, it was $31.8 billion; in FY2022 it was $48.35 billion; in FY2023 it was $27.47 billion; and in FY2024 it was $24.11 billion – half of the deficit recorded in fiscal year 2022.

The documents show that in the ongoing fiscal year 2025, imports of solar panels, transformers and power transmission equipment increased by 60 per cent. Moreover, imports of power transmission equipment reached $319 million in the current economic year.

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In comparison, imports of industrial machinery equipment increased by 20 per cent, textile machinery by 40 per cent, and auto parts by 58 per cent, the documents showed.