ISLAMABAD  -   Pakistan’s trade deficit narrowed by 12.32 percent to $24.01 billion in the previous fiscal year (2023-24).

According to the latest data of Pakistan Bureau of Statistics (PBS), the country’s trade deficit has narrowed by 12.32 percent during the last fiscal year. The trade imbalance, gap between exports and imports, was recorded at $24.01 billion as against $27.05 billion during the same period of last fiscal year. Pakistan’s exports have enhanced by 10.54 percent to $30.6 billion during the fiscal year 2023-24 as compared to $27.7 billion in the fiscal year 2022-23. Meanwhile, imports declined slightly by 0.84 percent to $54.7 billion during the year 2023-24 as compared with $55.2 billion in the last fiscal year. The data further showed that the country’s trade deficit widened by 10.9 percent on a month-on-month basis to $2.4 billion in June this year as against $2.1 billion in May. Exports have recorded 10.92 percent decline to $2.5 billion in June 2024 when compared to $2.8 billion in May 2024. On the other hand, the imports have recorded a 0.08 percent increase to $4.9 billion in June 2024. The trade deficit widened by only 30.39 percent on a year-on-year basis to $2.4 billion in June 2024 compared to $1.8 million in June 2023. Imports have increased by 17.4 percent on a YoY basis and remained $4.9 billion in June 2024 compared to $4.2 billion in June 2023. Exports have enhanced by 7.34 percent on a YoY basis and remained $2.5 billion in June 2024 compared to $2.4 billion in June 2023. The ministry of finance in its recent report noted that in May 2024, the current account showed deviation from its trend observed in previous months – deficit of $270 million. Imports of goods and services increased significantly by 25.3 and 12.2 percent on YoY and MoM basis, respectively. Similarly, exports of goods and services posted an expansion of 15.4 and 12.7 percent on YoY and MoM basis, respectively. Resultantly, strong expansion in imports has diluted the export growth – the trade deficit increased by 45.9 and 11.4 percent on YoY and MoM basis, respectively. Another factor that causes the current account deficit is primary income debit of $ 1.5 billion ($ 646 million in April 2024). On the other hand, workers’ remittances increased by 15.3 percent on MoM basis - contributed significantly and saving the current account from a large deficit. It is expected that current account will end within sustainable limits.