Pakistan’s trade deficit drops 35.7%

Analysts suggest that sustained efforts in this direction could contribute to long-term economic stability and growth for Pakistan.

Pakistan’s trade deficit drops 35.7%. In a positive turn of events, Pakistan’s trade deficit for the month of December showed significant improvement, according to revised data released by the Pakistan Bureau of Statistics (PBS).

The deficit stood at $1.83 billion, a notable decrease from the previous month’s $1.97 billion, marking a 7 per cent month-on-month improvement.

Comparing year-on-year figures, December 2023’s trade deficit of $1.83 billion demonstrated a substantial 35.7 per cent reduction from the $2.84 billion recorded in December 2022.

Export figures contributed significantly to this positive trend, with a 9.68 per cent month-on-month increase, reaching $2.82 billion in December compared to $2.57 billion in November 2023.

On the other hand, imports registered a moderate 2.45 per cent month-on-month growth, reaching $4.65 billion in December, up from $4.54 billion in the preceding month.

The Pakistan Bureau of Statistics, through provisional figures, revealed that in Pakistani rupee terms, December 2023 witnessed exports amounting to Rs799.6 billion.

This reflects an 8.86 per cent month-on-month increase and an impressive 54.59 per cent year-on-year surge. Notable commodities in this export surge included rice (Rs124.04 billion), knitwear (Rs103.9 billion), and ready-made garments (Rs8.57 billion).

On the import side, December 2023 saw imports in Pakistani rupees totaling Rs1.32 trillion, indicating a 1.66 per cent month-on-month rise and a robust 13.94 per cent year-on-year increase.

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Key imported commodities included petroleum crude (Rs158.26 billion), petroleum products (Rs150.89 billion), and natural gas, liquified (Rs109.52 billion).

This positive trade performance aligns with the government’s efforts to bolster the economy and reflects a promising start to the new year.

Analysts suggest that sustained efforts in this direction could contribute to long-term economic stability and growth for Pakistan.