Trade deficit shrinks as exports rise in first four months of fiscal year

Pakistan's trade deficit saw a significant reduction during the first four months of the current fiscal year, according to newly released data from the Federal Bureau of Statistics.

The report highlights a robust increase in exports and a notable decrease in the trade deficit, driven by both monthly and annual gains.

Exports climbed by 13.45% in the July-October period, reaching $10.88 billion, while in October 2024 alone, exports rose 10.64% year-on-year and 4.9% month-on-month, totalling $2.975 billion.

This growth in exports marks a positive shift for the economy, supported by a simultaneous record decline in imports.

The trade deficit for October 2024 was reported at $1.498 billion, reflecting a 31% year-on-year decrease and a 17.69% reduction from the previous month. Over the July-October period, the trade deficit shrank by 5.59%, totalling $6.974 billion. Meanwhile, imports increased modestly by 5.17% over the four months, reaching $17.854 billion, while October imports stood at $4.473 billion.

The Bureau of Statistics attributes the trade deficit improvement to strategic export policies and a measured approach to imports, setting a promising economic trend for the fiscal year ahead.