ISLAMABAD: Pakistan’s trade imbalance experienced an expansion, reaching $2.099 billion in October 2023. This marked a significant growth of 38.27% compared to the previous month’s deficit of $1.51 billion.
The Pakistan Bureau of Statistics (PBS) reported the latest foreign trade data on Thursday.
During October, exports saw a positive shift, compared to the previous month, reaching $2.71 billion.
This was a notable improvement from the $2.48 billion recorded in September 2023. Moreover, the year-on-year comparison demonstrated even more favorable results, with exports rising by 13.55% when compared to October 2022.
On the other hand, the surge in imports during the same month played a significant role in the widening trade deficit.
Imports increased by 20.33% compared to the previous month, totaling $4.81 billion in October, up from $4 billion. In a year-on-year context, imports also showed growth, increasing by 4.91% in comparison to October 2022, when they amounted to $4.58 billion.
When analyzing cumulative data for the first four months of Fiscal Year 2024, a positive trend emerges. The trade deficit improved by 34.70% year-on-year, falling to $7.42 billion, compared to the $11.36 billion reported during the same period in the previous fiscal year. This suggests a promising development in Pakistan’s trade dynamics.
Despite the challenges posed by global economic conditions, these statistics underscore the resilience and potential for growth in Pakistan’s trade sector.
Meanwhile, exports of Pakistan have finally surged by 14% year-over-year in October 2023, from $2.4 billion to $2.7 billion.
Nonetheless, Pakistan’s monthly trade deficit has risen by $0.6 billion due to an $0.8 billion surge in imports.
On an annual basis, the trade deficit is slowly contracting at a pace of 4%, which isn’t necessarily negative news.
Import restrictions have been lifted as part of the IMF program, allowing the economy to meet pent-up demand.
