Mohsin Siddiqui (Chief Reporter)
The Pakistan Bureau of Statistics (PBS), it was revealed that Pakistan’s exports saw a notable increase of 11.83% in July 2024 compared to the same month in the previous fiscal year. This growth reflects a positive trend in the country’s export performance, though the rise in imports has led to a widening trade deficit.
According to the latest data from PBS, Pakistan’s exports for July 2024 amounted to $2.308 billion, a significant rise from $2.064 billion recorded in July 2023. This 11.83% increase highlights an encouraging development in Pakistan’s trade sector, signaling potential growth in global demand for Pakistani products.
Conversely, imports into Pakistan also saw an increase, rising by 15.30% to $4.256 billion in July 2024, up from $3.691 billion in the same month last year. The simultaneous rise in both exports and imports has contributed to a larger trade deficit.
The trade deficit for July 2024 was reported at $1.948 billion, a significant increase of 19.71% from the $1.627 billion deficit recorded in July 2023. This widening of the trade gap indicates that while exports are growing, the rate of import increase is outpacing export growth, leading to a higher trade imbalance.
On a month-to-month basis, there was a decrease in exports in July 2024 compared to June 2024. Exports in July were 9.77% lower than the $2.558 billion recorded in the preceding month. This decrease may reflect seasonal variations or adjustments in trade patterns.
Imports also experienced a reduction of 14.27% from the $4.964 billion recorded in June 2024. The decline in month-on-month imports may suggest a temporary adjustment or a decrease in demand for imported goods.
The export of services in Pakistan showed growth during the fiscal year 2023-24. The value of services exports increased by 2.7%, reaching $7.806 billion, up from $7.595 billion in the previous year. This modest increase indicates a steady demand for Pakistani services on the international stage.
In contrast, imports of services saw a more substantial increase of 17.14%, rising from $8.638 billion in the previous year to $10.119 billion in the fiscal year 2023-24. The growth in services imports outpaced the increase in services exports, leading to a significant rise in the services trade deficit.
The services trade deficit for the fiscal year 2023-24 was reported at $2.313 billion, marking a dramatic increase of 121.76% from the $1.043 billion deficit recorded in the previous fiscal year. This substantial rise in the services trade deficit highlights the growing imbalance between services exports and imports.
The increase in exports is a positive indicator of Pakistan’s improving trade relations and export competitiveness. However, the concurrent rise in imports and the widening trade deficit pose challenges for the country’s economic stability. The government and policymakers may need to address these issues to ensure a more balanced trade scenario.
Efforts to boost export growth, diversify export products, and enhance global market access could help mitigate the trade imbalance. Additionally, addressing factors contributing to higher import volumes and exploring ways to reduce the trade deficit will be crucial for maintaining economic stability.
