As per the Pakistan Bureau of Statistics (PBS), the trade deficit of Pakistan increased by 180.58 percent YoY and was recorded at $2.374 billion in April 2024, as opposed to $846 million in the same month of 2023.
In April 2024, the value of imports was $4.723 billion, up 58.43 percent YoY from $2.981 billion in the same month next year. In April 2024, the value of exports was $2.349 billion, up 10.02 percent year over year from $2.135 billion in the same month last year.
From $2.301 billion in March 2024 to $2.374 billion in April 2024, the trade deficit increased by 3.16 percent on a MoM basis. Compared to $2.572 billion in March 2024, exports decreased 8.67 percent to $2.349 billion in April 2024.
From $4.873 billion in March 2024 to $4.723 billion in April 2024, imports fell by 3.08 percent.
In the first ten months of the current fiscal year 2023–24, from July to April, the trade deficit decreased by 17.09 percent to $19.514 billion from $23.535 billion in the same period of the previous fiscal year.
Read more: Trade Deficit Widens By 38% In October Amid Highest Monthly Imports Since January
From July to April of FY24, the nation’s exports reached $25.280 billion, up 9.10 percent ($2.109 billion) from $23.171 billion during the same period of the previous fiscal year.
The first ten months of the current fiscal year saw a 4.09 percent decrease in imports to $44.794 billion from $46.706 billion during the same period previous year.
A number of important imports have an impact on Pakistan’s growing trade deficit. Some key contributors are:
- Fuel & Fuel Products:
Liquefied natural gas (LNG), refined fuels, and crude oil are among the petroleum products that Pakistan mainly depends on imports. Much of the trade deficit is made up of these imports of energy.
- Industrial apparatus and machinery:
An essential component of economic growth and development is the importation of capital goods, machinery, and industrial equipment. But the imbalance in commerce is exacerbated by their high worth.
- Electrical Appliances and Machinery:
To accommodate domestic demand, products like transformers, electrical generators, and other electrical machinery are imported. These add to the import bill as a whole.
- Steel and iron:
The development of infrastructure, manufacturing, and construction all depend on the importation of iron and steel products. Their price, though, increases the trade deficit.
- Cars and Auto Parts:
A considerable amount of automobiles, auto parts, and accessories are imported. Pakistan’s automobile sector depends on imported parts, which has an impact on the country’s overall trade balance.
- Electronics and Mobile Phones:
Significant imports fall into this category due to consumer demand for appliances, electronic devices, and mobile phones.
It’s crucial to remember that, even while some of these imports are necessary for economic development and expansion, policymakers must find a balance in order to properly control the trade deficit. This problem can be solved with the aid of tactics like expanding local production, encouraging exports, and diversifying the economy.