Mohsin Siddiqui (Chief Reporter)

Pakistan’s trade deficit witnessed a substantial decrease of 34.29%, amounting to $11.15 billion in the first six months of the fiscal year 2023-24 (6MFY24). This positive trend can be attributed to the implementation of administratively controlled measures, resulting in a noteworthy reduction in imports, coupled with a marginal improvement in exports.

The Pakistan Bureau of Statistics (PBS) released data on Tuesday, revealing that the trade balance, representing the gap between exports and imports, stood at a deficit of $11.15 billion during the July to December period of 2023-24. This marks a significant improvement from the $16.97 billion deficit recorded in the same period of the previous year.

Key Points:

1. Trade Balance Improvement: The trade deficit for 6MFY24 reduced by 34.29% to $11.15 billion, showcasing the impact of import control measures and a marginal boost in exports.
2. Export Growth: Exports during this period exhibited a 5.17% increase, reaching $14.98 billion compared to $14.24 billion in the corresponding period of the previous year.
3. Import Decline: Import figures witnessed a substantial drop of 16.3%, declining to $26.13 billion from $31.21 billion in the July to December period.
4. Monthly Trade Deficit Decline: In December 2023, the trade deficit further contracted by over 40% to $1.7 billion, down from $2.84 billion in the same period of the previous year.
5. Export Surge in December: Exports experienced a significant surge of 22.2%, reaching $2.8 billion in December 2023 compared to $2.3 billion in the same month of the previous year.
6. Import Reduction in December: December 2023 witnessed a 12.25% decrease in imports, falling to $4.51 billion from $5.14 billion in the corresponding month last year.
7. Monthly Decline: On a monthly basis, the trade deficit declined by 13.4% in December 2023 compared to $1.96 billion in November 2023.
8. Export Monthly Improvement: Exports increased by 9.3% on a monthly basis to $2.57 billion in November 2023, showcasing a positive trend.
9. Marginal Import Decrease Monthly: Imports posted a slight decline of 0.55%, reducing to $4.51 billion from $4.54 billion in the previous month.
10. PBS Data Insights: According to PBS, the data underscores a consistent pattern of monthly export growth and marginal import reduction, contributing to the overall improvement in Pakistan’s trade balance.