Pakistan’s Import Expenditure Declines by 16.28% in the First Half of FY24
Published on: January 9, 2024.
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Pakistan’s Import Bill Declines by 16.28% in First Half of Fiscal Year 2023-24
Pakistan has seen a significant decline in its import bill during the first half of the fiscal year 2023-24, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday. The import bill has decreased by 16.28%, going from $31.21 billion in the corresponding period of the previous fiscal year to $26.13 billion in the current fiscal year.
On the other hand, the country’s exports have experienced a positive trajectory, showing a growth of 5.17%. In 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 has resulted in a substantial contraction of the trade deficit by 34.79%, 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.
In December 2023, the country’s exports surged by an impressive 22.21% on a year-on-year (YoY) basis, reaching $2.81 billion. This is 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%, 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%, 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%, reaching $2.81 billion compared to $2.57 billion in November 2023. Meanwhile, the import bill for the country declined by 0.55% 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%, 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 growth in exports reflects positively on Pakistan’s trade balance, indicating 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. These developments demonstrate resilience and adaptability within Pakistan’s trade dynamics as it navigates through economic challenges. Market participants and stakeholders will closely monitor these trends and anticipate their impact on broader economic indicators in the coming months.
Source: [PK Revenue](https://pkrevenue.com){:target=”_blank” rel=”nofollow”}
