With lower imports, trade deficit shrinks to $21.7b

Pakistan’s trade deficit narrowed to $21.7 billion in the first 11 months of the outgoing fiscal year on the back of continued contraction in imports and some momentum in exports, which brought the annual export target within reach. The trade deficit – the gap between exports and imports – was 15%, or $3.9 billion, lower during the July-May period of the current fiscal year compared to a year ago, according to figures released by the Pakistan Bureau of Statistics (PBS) on Monday. Imports during the first 11 months of 2023-24 reached $49.8 billion, down $1.2 billion, or 2.4%, according to the national data collecting agency. The reduction in imports is gradually slowing down due to the slight easing of import restrictions. At the time of budget announcement last year, the government had estimated $58.7 billion in annual imports, which it later slashed to $52 billion. However, it seems that imports may now remain around $54 billion by the end of FY24.