Pakistan’s trade deficit contracts nearly 39% to $12.24bn in 7MFY24

Pakistan’s trade deficit shrank 38.79% to $12.24 billion in 7MFY24 on account of a considerable reduction in imports, a result of administratively controlled measures, and a marked increase in exports.

The country’s trade balance, gap between exports and imports, was recorded at a deficit of $12.24 billion in July to January period of the year 2023-24 as compared to $20.01 billion in the same period of the previous year, according to data released by Caretaker Minister of Commerce Dr Gohar Ejaz on Thursday, in a post.

In the period under review, imports reduced substantially while exports saw a notable increase, which reduced the trade deficit.

During 7MFY24, Pakistan’s exports increased by 12.2% to $17.76 billion from $15.83 billion in the corresponding period of the previous year.

On the other hand, imports fell by 16.3% to $30.01 billion in the July to January period, as compared to $35.84 billion in the same period of FY22.

Pakistan’s trade deficit shrinks over 34% to $11.15bn in 6MFY24

Monthly figures

According to PBS, the country’s trade deficit shrunk by over 30% to $1.88 billion in January 2024 from $2.69 billion in the same period of the last year.

Exports improved significantly by 27% to $2.8 billion in January 2023 from $2.2 billion in same month of the previous year. On the other hand, imports reduced by 4.5% to $4.67 billion in January 2024 from $4.88 billion in the same month last year.

However, on a monthly basis, the trade deficit increased by 10%, as compared to $1.7 billion in December 2023.

The data showed exports decreased while imports posted a marginal improvement on a monthly basis.

Exports declined by 1% when compared monthly to $2.81 billion in the preceding month of December. Meanwhile, imports inched up by 3% to $4.66 billion from $4.51 billion last month.