ISLAMABAD - Pakistan’s trade deficit has shrunk by over 30.18 percent to $14.87 billion in the first eight months (July to February) of the current fiscal year as imports have declined more than exports.
According to the latest data of Pakistan Bureau of Statistics (PBS), the country’s trade deficit has narrowed by 30.18 percent during the July-February period of the current fiscal year. The trade imbalance, gap between exports and imports, was recorded at $14.87 billion as against $21.3 billion during the same period of last fiscal year. Pakistan’s exports have enhanced by 9 percent to $20.4 billion during July-February of the year 2023-24 as compared to $18.7 billion in the corresponding period of the last fiscal year. Meanwhile, imports declined by 11.87 percent to $35.2 billion during the first eight months of the current fiscal year as compared with $40 billion in the same period of the last fiscal year.
The data further showed that the country’s trade deficit narrowed by 13.49 percent on a month-on-month basis to $1.71 billion in February 2024 when compared to $1.98 billion in January 2024. The exports have recorded a 10 percent decrease to $2.6 billion in February 2024 when compared with $2.79 billion in January 2024. On the other hand, the imports have decreased by 10.19 percent to $4.3 billion in February 2024 when compared with $4.8 billion in January 2024.
The trade deficit narrowed by 1.95 percent on a year-on-year basis to $1.71 billion in February 2024 compared to $1.75 billion in February 2023. Imports have enhanced 8.89 percent on a YoY basis and remained $4.3 billion in February 2024 compared to $3.9 billion in February 2023. Exports have enhanced by 17.54 percent on a YoY basis and remained $2.6 billion in February 2024 compared to $2.2 billion in February 2022.
Pakistan’s trade balance improved in February 2023-24, narrowing by 18.2% compared to the same month in the previous fiscal year. This positive development is attributed to a significant increase in exports and a moderate rise in imports.
Meanwhile, according to the ministry of commerce, the government of Pakistan remains committed to implementing policies that promote export-oriented industries, diversify export markets, and attract foreign direct investment. These efforts are expected to further improve Pakistan’s trade balance in the coming months.
When contacted about the positive development, Dr Gohar Ejaz, Minister for Commerce, said, “This is the third consecutive month where exports are approaching 30% growth. These grew by 28% in Dec, 27% in Jan and now in Feb, they have grown by 30% year on year.”
“Our exports are now diversifying as show by 15% increase in manufacturing & engineering exports and 70% increase in the agri & food exports.” Dr. Ejaz commented. He further said, “While this is a positive development, there is need for continued vigilance. We must maintain our focus on policies that boost competitiveness and streamline trade processes.”
