Islamabad, May 2, 2024 – Pakistan has witnessed a substantial narrowing of its trade deficit by 17 percent during the first ten months of the fiscal year 2024, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The deficit stood at $19.51 billion from July 2023 to April 2024, down from $23.54 billion during the same period in the previous fiscal year.
The PBS data revealed that the country experienced a notable 9.10 percent increase in exports, which climbed to $25.28 billion in the period under review, up from $23.17 billion in the corresponding months of the last fiscal year. This growth in exports reflects an improving performance across various sectors, bolstered by competitive pricing and diversification into new markets.
Concurrently, Pakistan’s import bill showed a decrease of 7.09 percent, amounting to $44.79 billion during July 2023 to April 2024, compared to $46.71 billion in the same period of the last fiscal year. The decline in imports is attributed to stringent import controls and a shift towards more sustainable consumption patterns within the country.
Despite the overall positive trend in the ten-month period, the trade data for April 2024 presents a different scenario. The trade deficit for the month widened sharply by 180 percent on a year-on-year basis, reaching $2.374 billion compared to a deficit of $846 million in April 2023. This sudden increase is primarily due to a significant rise in imports, which surged by 58.43 percent to $4.72 billion in April 2024, up from $2.98 billion in the corresponding month last year.
The spike in imports for the month can be attributed to increased purchases of essential goods and raw materials needed to fuel the domestic economy. Additionally, exports during April also increased by 10.02 percent to $2.35 billion from $2.14 billion in April 2023, showing continued resilience in overseas market demand.
On a month-on-month basis, the trade deficit in April 2024 also widened by 3.16 percent. Both exports and imports saw a downturn, with exports dropping by 8.67 percent and imports by 3.08 percent from the previous month, reflecting fluctuations in global trade dynamics and domestic economic conditions.
Economic analysts suggest that while the year-long improvement is commendable, the fluctuations and the significant deficit expansion in April highlight ongoing challenges. Pakistan must continue to foster export growth and manage imports judiciously to sustain and further improve its trade balance.
The government and stakeholders are closely monitoring these developments, aiming to strengthen economic strategies that cater to both immediate and long-term trade goals.
