The Pakistan Bureau of Statistics (PBS) released data on Tuesday, indicating a notable 34% contraction in Pakistan’s trade deficit during the first half of the current fiscal year (1HFY24) compared to the corresponding period last year (1HFY23).
For July-December FY24, the trade deficit stood at $11.148 billion, marking a substantial reduction from the $16.965 billion deficit recorded in July-December FY23. In December 2023 alone, the deficit decreased by 13% month-on-month and 40% year-on-year, reaching $1.702 billion, according to PBS data.
During the review period, exports showed a positive trend, increasing by 5% to $14.981 billion compared to $14.244 billion in the corresponding period last year. Conversely, imports witnessed a decline of 16%, reaching $26.129 billion compared to $31.209 billion in the previous year.
In a year-on-year analysis for December, exports surged by 22%, totaling $2.812 billion compared to $2.301 billion in December 2022. December 2023 imports recorded at $4.514 billion marked a 12% decrease from $5.144 billion in December 2022.
Examining the month-on-month scenario, December exports improved by 9% from November 2023’s $2.573 billion, while imports experienced a marginal 1% decline from November’s $4.539 billion.
The data suggests a positive shift in Pakistan’s trade dynamics, reflecting a considerable improvement in the trade balance during the first half of the fiscal year.
