ISLAMABAD: The trade deficit in Pakistan experienced a notable decline in June 2023. On a monthly basis, it decreased by 15%, amounting to $1.81 billion. This reduction indicates an improvement in the country’s trade balance.
Moreover, the annual trade deficit showed a significant decrease of 63%, indicating a positive trend in the overall trade performance.
In terms of exports, June witnessed a modest increase of 8% compared to the previous month. However, when examining exports on an annual basis, there was a decline of 40%. This suggests that although exports experienced a short-term boost, there is a need for sustained growth. Particularly, domestic exports recorded a 19% decline on an annual basis, reflecting challenges in the domestic market.
On the other hand, imports in Pakistan experienced a substantial decrease of 47% in June. The total value of imports reached $4.18 billion during this month. The reduction in imports contributed significantly to the overall reduction of the trade deficit by 63%. This decline indicates a decrease in the dependency on foreign goods and highlights efforts to control the trade deficit.
Pakistan lifted the restrictions on imports in March 2023 after its current account deficit narrowed to a two-year low at $78 million in February 2023 in the wake of import control measures.
In June 2023, the value of domestic exports reached $2.37 billion. Despite the decline in annual exports, the increase in overall exports during the month indicates some potential for growth. To sustain and improve the trade balance, it will be crucial for Pakistan to focus on expanding export markets, diversifying export products, and promoting domestic industries.
The reduction in the trade deficit, along with the measures taken to control imports and enhance exports, reflects positive developments for Pakistan’s trade performance. Continued efforts to improve the trade balance will be essential to strengthen the economy, boost domestic industries, and foster sustainable economic growth.
