Pakistan’s trade deficit experienced a notable reduction of over 30% in October 2024, dropping to $1.498 billion compared to $2.174 billion in the same month last year. This substantial decrease reflects an ongoing improvement in the country’s trade balance, supported by rising exports and falling imports.
Exports Show 11% Growth Year-on-Year
One of the key drivers of this positive trend is the 11% year-on-year increase in exports. In October 2024, exports reached $2.975 billion, up from the previous year, indicating robust performance in sectors such as textiles, agriculture, and manufactured goods. This growth reflects Pakistan’s efforts to expand its international trade footprint and improve foreign exchange reserves.
Pakistani Rupee Sees Slight Appreciation Against US Dollar
Imports Decrease by 8%
Simultaneously, imports fell by 8% year-on-year, amounting to $4.473 billion in October. The drop in imports signals a shift toward domestic production and reliance on local resources, as well as possible impacts of governmental measures aimed at reducing non-essential imports. This reduction also contributes to the overall improvement in the trade balance.
Fiscal Year-to-Date Deficit Also Declines
In the first four months of the fiscal year 2025, Pakistan’s trade deficit shrank by 6%, totaling $6.974 billion. This progress indicates sustained efforts to balance trade and reduce reliance on imports. While challenges remain, the consistent reduction suggests a positive outlook for the economy if this trend continues.
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