Pakistan’s trade deficit witnessed a substantial improvement of 34.29% year-on-year (YoY) in the first half of fiscal year 2024, settling at $11.15 billion, a noteworthy decline from the $16.97 billion reported in 1HFY23. These figures, unveiled by the Pakistan Bureau of Statistics (PBS), underscore a positive shift in the country’s trade dynamics.
During 1HFY24, exports experienced a healthy YoY growth of 5.17%, reaching Rs14.98 billion, while imports registered a significant YoY decline of 16.28%, standing at Rs26.13 billion. This balanced trade equation contributes to the reduction in the overall trade deficit.
TRADE DEFICIT IMPROVEMENT
Diving into December’s performance, the trade deficit for the month stood at $1.7 billion, reflecting a 13.43% month-on-month (MoM) improvement compared to the previous month’s deficit of $1.97 billion. Impressively, this figure also showcases a substantial 40.13% reduction when compared to December 2022’s deficit of $2.84 billion.
December exports reached $2.81 billion, up 9.29% MoM from November 2023’s $2.57 billion. In addition, there was a noteworthy YoY growth of 22.2% in comparison to December 2022.
Conversely, Pakistan’s expenditure on imports during the review month experienced a slight 0.55% MoM decline, totaling $4.51 billion compared to $4.54 billion in the previous month. Moreover, in a YoY perspective, imports declined by 12.25%, standing at $5.14 billion in December 2023.
CONCLUSION
The latest data released by PBS for December 2023 highlights the monthly and YoY trends, with exports, imports, and the trade deficit showing fluctuations. The figures indicate a positive momentum, with a consistent effort to narrow the trade deficit.
Overall, the economic landscape portrays a constructive trend, with a notable reduction in the trade deficit, affirming the positive impact of strategic economic measures. The surge in exports coupled with controlled imports signifies a robust start to FY24, setting an optimistic tone for Pakistan’s economic trajectory. Investors and analysts alike are keenly watching these developments as the nation steers towards sustainable economic growth.
Moreover, the latest date from around the world signifies an economic turnaround or a near miss from recession as was anticipated by a large number of economists.
In the latest twist of the forex market saga, Wednesday’s interbank trading witnessed the Pakistani rupee (PKR) making a resilient comeback, appreciating by 17 paisas against the US dollar. This marked a notable shift from the previous day’s closing at PKR 281.89 to the current value of PKR 281.72. The PKR’s success story continued after a 13-day winning streak, showcasing its dynamic nature in response to market fluctuations. As we navigate the intricacies of the ever-changing forex landscape, the journey promises to be both exciting and unpredictable. Buckle up for the twists and turns in this financial rollercoaster!
