Pakistan's Trade Deficit Narrows, Exports Increase

Pakistan's trade deficit has shown a significant improvement, narrowing by over 17.09% to $19.51 billion in the first ten months of the current fiscal year (July to April). This positive development is attributed to a 9.1% increase in exports, totaling $25.28 billion, and a 4.09% decrease in imports, amounting to $44.79 billion during the same period.

During April 2024, the trade deficit slightly widened by 3.16% to $2.37 billion compared to March 2024. This was due to a decrease in exports by 8.67% to $2.35 billion, while imports also declined by 3.08% to $4.72 billion.

On a year-on-year basis, the trade deficit in April 2024 decreased significantly by 180.58% to $2.37 billion compared to April 2023. Imports surged by 58.43%, reaching $4.72 billion, and exports increased by 10.02% to $2.35 billion during the same period.

The Ministry of Finance anticipates a boost in imports to stimulate economic activities in the upcoming months, while exports are expected to maintain their positive trend. Remittances are projected to remain stable between $2.3-2.5 billion, ensuring a sustainable current account balance.

In March 2024, exports of goods and services grew by 2.1% month-on-month and 4.6% year-on-year, while imports increased by 3.7% and 7.9% in the same respective periods. Despite a widening trade deficit, the surge in remittances by 31% month-on-month and 16.4% year-on-year led to a current account surplus of $619 million in March.