Islamabad, January 2, 2024 – Pakistan’s import bill has witnessed a substantial decline of 16.28 percent during the first half (July – December) of the fiscal year 2023-24, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.
The figures indicate a notable reduction from $31.21 billion in the corresponding period of the previous fiscal year to $26.13 billion in the current fiscal year.
Conversely, the country’s exports experienced a positive trajectory, registering a growth of 5.17 percent. During the first half of the current fiscal year, exports reached $14.98 billion, compared to $14.24 billion in the same period of the last fiscal year. This dynamic has resulted in a substantial contraction of the trade deficit by 34.79 percent, reducing it from $16.96 billion in the corresponding period of the previous fiscal year to $11.15 billion in the first half of fiscal year 2023-24.
On a year-on-year (YoY) basis, the country’s exports surged by an impressive 22.21 percent in December 2023, reaching $2.81 billion, up from $2.30 billion in the same month of the previous year. In contrast, the import bill for December 2023 experienced a notable decline of 12.25 percent, standing at $4.51 billion compared to $5.14 billion in December 2022. Consequently, the trade deficit for December 2023 shrank significantly by 40.13 percent, reaching $1.70 billion, down from $2.84 billion in December 2022.
Analyzing the data on a month-on-month (MoM) basis, exports for December 2023 increased by 9.29 percent, reaching $2.81 billion compared to $2.57 billion in November 2023. Meanwhile, the import bill for the country declined by 0.55 percent in December 2023, totaling $4.51 billion compared to $4.54 billion in the previous month. Consequently, the trade deficit on an MoM basis fell by 13.43 percent, standing at $1.70 billion in December 2023 compared to $1.97 billion in November 2023.
Economists and market analysts attribute the decline in the import bill to various factors, including efforts to curb unnecessary imports and a potential shift in consumption patterns. The simultaneous growth in exports reflects positively on Pakistan’s trade balance, signaling improved economic conditions and global demand for its products.
The substantial reduction in the trade deficit is likely to be welcomed by policymakers, as it contributes to the overall economic stability of the country. As Pakistan navigates through economic challenges, these developments provide a glimpse of resilience and adaptability within the nation’s trade dynamics. Market participants and stakeholders will continue to monitor these trends, anticipating their impact on broader economic indicators in the upcoming months.
