Another economic setback for Pakistan

Another economic setback for Pakistan

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.