Trade Deficit Shrink by 34.29%, Export Growth of 5.17% in the First Half
Published on: January 10, 2024.
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The Pakistan Bureau of Statistics (PBS) has reported that the country’s merchandise trade deficit has contracted by 34.29 percent during the first half of the current fiscal year compared to the same period last year.
In the period from July-December (2023-24), the trade deficit was recorded at $11.148 billion, a decrease from the deficit of $16.965 billion in July-December (2022-23), marking a negative growth of 34.29 percent. However, exports increased by 5.17 percent to $14.981 billion during this period, compared to $14.244 billion in the corresponding period of the previous year, as per the latest data from PBS. This increase in exports has contributed to narrowing the trade deficit.
Conversely, imports have decreased by 16.28 percent, totaling $26.129 billion, compared to $31.209 billion in the previous year. Examining the data on a year-on-year basis, exports from the country grew by 22.21 percent in December compared to the same month in the previous year. In December 2023, exports were recorded at $2.812 billion, while in December 2022, exports were $2.301 billion. Similarly, imports in December 2023 were $4.514 billion, showing a decrease of 12.25 percent compared to $5.144 billion in December 2022.
Looking at the month-on-month data, exports from the country increased by 9.29 percent compared to November 2023, reaching $2.812 billion. Conversely, imports decreased by 0.55 percent, totaling $4.514 billion.
In addition to merchandise trade, the services’ sector also plays a crucial role in Pakistan’s trade. During July-November (2023-24), services exports earned foreign exchange worth $2,986 million, a decrease of 3.33 percent compared to the same period last year. However, services imports increased by 20.67 percent, rising from $3,406 million to $4,110 million in the first five months of the current fiscal year. As a result, the services trade deficit increased by 254.51 percent during this period, reaching $1,124 million.
This update in Pakistan’s trade performance reflects the country’s efforts to boost its export sector. With the increase in exports and the decrease in imports, the negative trade balance is shrinking. This trend is encouraging for the economy and demonstrates the potential for further growth in the coming months.
