Pakistan's trade dynamics witnessed a notable shift in March as the trade deficit surged by 24.56% Month-on-Month (MoM), reaching $2.17 billion, compared to the preceding month, revealed data from the Pakistan Bureau of Statistics (PBS).
The trade deficit figures for March 2024 portray a stark contrast from February, where the deficit stood at $1.74 billion. This significant increase in the deficit marks a challenging period for Pakistan's economic landscape, prompting concerns among policymakers and analysts.
The year-on-year (YoY) comparison paints an even more concerning picture, with the trade deficit skyrocketing by 56.30% compared to March 2023, when it stood at $1.39 billion.
Despite efforts to boost export figures, March saw a marginal decrease of 1.08% MoM in exports, totaling $2.56 billion compared to $2.28 billion in February 2024. However, on a YoY basis, exports managed to register a modest growth of 7.99% compared to March 2023.
Conversely, imports surged during the review month, indicating increased spending on foreign goods. Imports recorded a notable rise of 9.25% MoM, reaching $4.73 billion, compared to $4.33 billion in the previous month.
The YoY comparison is even more striking, with imports expanding by 25.86% compared to March 2023, when it stood at $3.76 billion.
The cumulative figures for the nine months of fiscal year 2023-24 (9MFY24) depict a mixed scenario. While the trade deficit has reduced by 24.94% YoY, standing at $17.03 billion compared to $22.69 billion in 9MFY23, challenges persist in achieving a sustainable balance.
In 9MFY24, exports amounted to $22.91 billion, reflecting a YoY increase of 8.93%, while imports stood at $39.94 billion, indicating a decline of 8.65% YoY. Despite the efforts to curb imports, the trade deficit remains a significant concern, requiring comprehensive strategies to promote exports and manage import expenditures effectively.
