Pakistan’s trade deficit experienced a significant reduction of 15.25% year-on-year (YoY) during the first eleven months of the fiscal year 2023-24 (11MFY24), according to the latest data released by the Pakistan Bureau of Statistics (PBS). This improvement is attributed to a notable increase in exports alongside a decline in imports.
Trade Balance Improvement
From July to May 2023-24, Pakistan’s trade deficit decreased to $21.73 billion, down from $25.64 billion during the same period in the previous fiscal year. The trade deficit, representing the gap between exports and imports, has been positively impacted by these shifts.
Export and Import Dynamics
During 11MFY24, exports surged by 10.65%, reaching $28.07 billion compared to $25.37 billion in the same timeframe of the previous year. Simultaneously, imports saw a slight decrease of 2.37%, totaling $49.8 billion, down from $51.01 billion during the corresponding period last year.
Monthly Trade Figures
In May 2024, Pakistan’s trade deficit saw a marginal YoY increase of 0.14%, standing at $2.11 billion compared to $2.10 billion in May 2023. Both exports and imports witnessed growth during this month, with exports rising by an impressive 27.08% to $2.8 billion from $2.2 billion in May 2023. Imports increased by 13.89%, amounting to $4.9 billion, up from $4.3 billion in the same month of the previous year.
Month-on-Month Analysis
On a month-on-month basis, the trade deficit in May 2024 decreased by 15.43%, dropping to $2.1 billion from $2.5 billion in April 2024. Exports in May 2024 grew by 18.76%, reaching $2.79 billion, compared to $2.35 billion in April. Imports also saw a modest rise of 1.16%, totaling $4.9 billion, up from $4.85 billion in the preceding month.
Conclusion
The consistent increase in exports coupled with the reduction in imports has positively influenced Pakistan’s trade balance during 11MFY24. The data from PBS highlights a progressive trend in the country’s trade dynamics, reflecting improved economic performance.
