Pakistan surpasses annual export target

Pakistan has exceeded its annual export target, helping to restrict the trade deficit to $24 billion for the just-ended fiscal year—nearly $10 billion less than the International Monetary Fund’s (IMF) original projection. According to figures released by the Pakistan Bureau of Statistics (PBS) on Tuesday, the trade deficit—the gap between exports and imports—was 12.3% or $3.4 billion less than the previous fiscal year. The trade deficit of $24 billion is significantly lower than the estimates of both the finance ministry and the IMF. Pakistan managed to keep the deficit in check by discouraging imports while maintaining healthy export momentum, which grew by over 10% during the last fiscal year. The trade deficit was $4.5 billion less than the government’s projection and nearly $10 billion less than the IMF’s forecast, which had used a $34 billion trade deficit figure during negotiations for the last Stand-By Arrangement. This higher projected deficit resulted in greater external financing requirements.