Exports rise by double digits in Oct, trade deficit narrows

ISLAMABAD: Exports grew by 13.55 percent year-on-year in October, the second consecutive month of expansion after a year of contraction, data from the statistics bureau showed on Wednesday.

The country exported goods worth $2.71 billion in October, up from $2.39 billion in the same month last year and $2.476 billion in September, the Pakistan Bureau of Statistics (PBS) said.

Notably, in eleven months from October 2022 to August 2023, the year-on-year decline in goods exports was in the range of 3.25 percent to 26.2 percent. In October 2022, export reduced by 3.25 percent, November 17.6 percent, December 16.3 percent, January 14.15 percent, February 22.7 percent, March 14.6 percent, April 26.2 percent, May 16.2 percent, June 19.1 percent, July 8.09 percent, August 4.7 percent, but in September it increased by 1.15 percent and now 13.55 percent.

Exports increased by 9.33 percent over September 2023’s exports of $2.476 billion. Imports on the other hand increased in October 2023 to $4.81 billion. Over the previous month’s imports of $2.476 billion, increased by 20.3 percent and 4.9 percent from a year ago. In October 2022, imports were at Rs4.58 billion.

The trade deficit narrowed by 4.5 percent to $2.1 billion in October 2023 from $2.197 billion in October 2022. In September 2023, the deficit was $2.38 billion.

During July-October 2023/24, total exports increased by less than a percent to $9.62 billion, while imports fell by 18.5 percent to $17 billion compared to the same period of last year. Last year in the same period, exports were $9.55 billion and imports $20.9 billion.

The trade deficit shrank by 34.7 percent to $7.4 billion in these four months of FY24 from $11.4 billion in the same period of FY23.

In FY23, Pakistan’s trade deficit fell by 43 percent to $27.55 billion from $48.35 billion in FY22, as total exports dipped by 12.7 percent to $27.7 billion and imports contracted by 31 percent to $55.3 billion.

Trade in Services

The data also showed that the trade deficit in services widened by 121 percent to $688 million in July-September 2023-24 from $311 million in July-September 2022-23 due to higher demand for foreign services as the economy reopened.

From July to September 2023-24, Pakistan spent $2.39 billion on the services it hired from abroad and offered its services of $1.7 billion. Similarly, in the same period last year, exports were the same at $1.7 billion while imports of $2.03 billion. During these three months, exports were down 0.6 percent while imports were up by 28.1 percent. In September 2023, services exports were valued at $571 million, while imports amounted to $787 million, resulting in a deficit of $216 million.

In August 2023, exports were at $601 million, imports at $799 million, and the deficit at $198 million. During September 2023, services exports were down by 4.98 percent, and imports also reduced by 1.5 percent compared to the previous month. Comparing September 2023’services trade performance to the same month of the previous year, exports were up by 1.08 percent, and imports also increased by 14.4 percent.