Islamabad, November 1, 2023 – Pakistan has reported a remarkable reduction in its trade deficit, with a 35 percent decrease in the first four months (July – October) of the fiscal year 2023-24, according to official figures released by the Pakistan Bureau of Statistics (PBS).
The trade deficit for the initial four months of the fiscal year 2023-24 stands at $7.42 billion, a substantial decline from the deficit of $11.36 billion recorded during the same period in the previous fiscal year. This substantial reduction can be attributed to a significant drop in Pakistan’s import bill.
During July – October of the fiscal year 2023-24, imports decreased by 18.54 percent, reaching $17.03 billion, compared to $20.91 billion in the corresponding period of the previous fiscal year. This reduction in imports has contributed significantly to the overall narrowing of the trade deficit.
On the other hand, Pakistan’s exports recorded a modest increase of 0.66 percent, reaching $9.62 billion during the first four months of the current fiscal year, compared to $9.55 billion in the same months of the previous fiscal year.
When analyzed on a Month on Month (MoM) basis, the trade deficit expanded by 38.27 percent in October 2023. The trade deficit for October 2023 reached $2.1 billion, compared to $1.52 billion in September 2023.
On a year-on-year (YoY) basis, the trade deficit decreased by 4.46 percent, ending at $2.1 billion, in comparison to $2.2 billion in October 2022.
This notable improvement in Pakistan’s trade balance is encouraging news for the country’s economy and its efforts to stabilize its external trade dynamics. The decrease in the trade deficit reflects prudent economic policies, as well as the potential for continued growth in exports and more controlled imports in the coming months.
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