Pakistan’s trade deficit shrinks by 33.5% as exports grow by 1.9%.

• The trade deficit narrowed to $9.3 billion from $14 billion a year earlier.
• Exports reach $12.17 billion compared to $11.9 billion last year.
• Imports shrank to $21.5 billion from $26 billion after a 17.3 percent decline.

As Pakistan struggles to stabilize a depreciating rupee and depleting foreign exchange reserves, the latest data from the Pakistan Bureau of Statistics (PBS) has given some hope showing a 33.59% decline in trade deficit and a 1.93% increase in exports.

The country’s trade deficit in the last five months from July to November (FY2023-24) was recorded at $9.3 billion compared to a trade deficit of $14.12 billion for the same period July to November (FY22-23 -23).

Moreover, during the period, the country’s exports were recorded at $12.17 billion against $11.9 billion of exports in the corresponding period last year.

Meanwhile, imports fell to $21.5 billion after a 17.3 percent decline compared to $26 billion recorded last year.

On an annual basis, exports from the country increased by 7.66% in November compared to exports in the same month of the previous year.

Exports during the month were recorded at $2.57 billion against exports of $2.38 billion in November 2022.

On the other hand, imports in November 2023 were recorded at $4.46 billion against imports of $5.15 billion in November 2022, showing a decrease of 13.47%.

On a monthly basis, exports from the country fell by 4.39% compared to exports of $2.69 billion in October 2023.

Imports into the country decreased by 8.31% compared to imports of $4.864 billion in October 2023.

Meanwhile, services exports during the July-October period (2023-24) earned foreign exchange worth $2.4 billion compared to exports of $2.33 billion in the corresponding period of the previous year, showing a growth of 3.34%.

The country’s services imports also increased by 19.57% from $2.7 billion last year to $3.2 billion in the first four months of the current fiscal year.

Based on the data, the services trade deficit increased by 116.66% during the period under review rising from $390 million last year to $847 million this year.