In October, Pakistan’s trade deficit expanded to $2.099 billion, marking a 38.27% month-over-month (MoM) deterioration from the previous month's deficit of $1.518 billion, according to data released by the Pakistan Bureau of Statistics (PBS).
Despite this monthly setback, there was a glimmer of optimism when compared to October 2022. The trade deficit showed a 4.46% improvement as it stood at $2.2 billion.
October saw exports increase by 9.33% MoM to $2.71 billion, a positive shift from the $2.48 billion recorded in September 2023. The year-on-year (YoY) comparison was even more favorable, with exports rising by 13.55% compared to October 2022.
However, the rise in imports during the review month was a notable factor contributing to the widening trade deficit. Imports surged by 20.33% MoM, reaching $4.81 billion compared to the previous month's $4 billion. In a YoY context, imports increased by 4.91% in October 2022, amounting to $4.58 billion.
Looking at the cumulative data for the first four months of Fiscal Year 2024, there is a positive trend. The trade deficit improved by 34.70% YoY, falling to $7.42 billion when compared to the $11.36 billion reported in the same period during the previous fiscal year. This suggests an encouraging development in Pakistan's trade dynamics.
Despite the challenges posed by global economic conditions, these statistics highlight some resilience and potential growth in Pakistan's trade sector.
