According to data from the Pakistan Bureau of Statistics (PBS), Pakistan’s trade deficit witnessed a significant contraction of 34 percent in the first half of the current fiscal year (1HFY24) compared to the same period last year (1HFY23).
The trade deficit for July-December FY24 stood at $11.148 billion, reflecting a noteworthy reduction from $16.965 billion in July-December FY23. In December 2023 alone, the deficit decreased by 13 percent month-on-month and 40 percent year-on-year, reaching $1.702 billion.
PBS data also reveals that exports during the review period increased by 5 percent, totaling $14.981 billion compared to $14.244 billion in the corresponding period last year. Concurrently, imports declined by 16 percent, amounting to $26.129 billion in contrast to $31.209 billion in the previous year.
In December 2023, exports experienced a notable year-on-year increase of 22 percent, reaching $2.812 billion compared to $2.301 billion in December 2022. Imports for the same month decreased by 12 percent, recording $4.514 billion compared to $5.144 billion in December 2022.
On a month-on-month basis, December exports improved by 9 percent, while imports decreased by 1 percent compared to November 2023, standing at $2.573 billion and $4.539 billion, respectively. The trade data indicates a positive trend in narrowing the trade deficit and fostering growth in the export sector.
