Trade deficit shrinks by 34 per cent during Jul-Dec’23

ISLAMABAD: Pakistan has reported a significant 34 per cent reduction in its trade deficit during the first six months of the current fiscal year, according to data released by the Pakistan Bureau of Statistics (PBS). The noteworthy decline in trade deficit is attributed to a 5 per cent surge in exports combined with a 16 per cent reduction in imports.

For the period from July to December 2023, the trade deficit stood at $11.14 billion, marking a substantial improvement from the $16.96 billion recorded in the same period of the previous fiscal year. In December 2023 alone, the trade deficit was $1.702 billion, showing a 13 per cent decrease compared to June and a remarkable 40 per cent drop compared to December 2022.

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The statistics reveal a commendable 5 per cent increase in domestic exports during the first half of the financial year. From July to December 2023, Pakistan’s exports reached $14.98 billion, compared to $14.24 billion in the corresponding period of the previous fiscal year. Notably, December 2023 witnessed a surge in domestic exports, reaching $2.81 billion, a substantial 22 per cent increase from December 2022.

In the same vein, the volume of Pakistan’s exports in December 2022 was $2.301 billion, reflecting a 9 per cent month-on-month growth compared to November. The foreign exchange earnings from domestic exports also saw a significant boost, rising from $2.57 billion in November to $2.81 billion in December.

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The positive trend is further underscored by a 16 per cent reduction in domestic imports during the first six months of the financial year. From July to November, the volume of imports stood at $26.12 billion, a notable decline from the $31.20 billion recorded in the same period of the previous fiscal year. December 2023 witnessed a 1 per cent monthly decrease in imports compared to November, with the volume reaching $5.14 billion. – INP