During the first five months of the current fiscal year (5MFY24), Pakistan has seen a notable improvement in its trade balance, with the trade deficit contracting by 33.59 percent compared to the corresponding period in the previous fiscal year (5MFY23).
Data released by the Pakistan Bureau of Statistics (PBS) reveals that the trade deficit for July-November FY24 stood at $9.378 billion, a substantial decrease from the $14.122 billion deficit recorded in the same period of the previous fiscal year.
This positive shift is attributed to a combination of increased exports and reduced imports. Exports for the 5MFY24 period grew by 1.93 percent, reaching $12.172 billion compared to $11.942 billion in the corresponding period of the previous fiscal year. On the other hand, imports experienced a significant decline of 17.32 percent, dropping to $21.550 billion from $26.064 billion in the same period last year.
Examining November 2023 specifically, exports showed a year-on-year increase of 7.66 percent, totaling $2.572 billion compared to $2.389 billion in November 2022. Conversely, imports for November 2023 decreased by 13.47 percent, recording $4.460 billion in contrast to the $5.154 billion imports of November 2022.
On a month-on-month basis, however, there was a slight dip in both exports and imports. Exports in November 2023 decreased by 4.39 percent compared to October 2023, where exports were at $2.690 billion. Imports, too, saw a decline of 8.31 percent from $4.864 billion in October 2023.
These trade figures indicate a positive trend in Pakistan’s economic landscape, reflecting a concerted effort to address the trade deficit by boosting exports and managing imports. The narrowing trade deficit is a promising development for the country’s fiscal health, and sustained efforts in this direction may contribute to further economic stability and growth.
