Exports jump 27 percent, trade gap shrinks by a third in January

ISLAMABAD: Pakistan’s goods exports rose 26.9 percent year-on-year to $2.786 billion in January, while imports fell 4.5 percent to $4.665 billion, resulting in a 30 percent reduction in the trade deficit, the commerce minister said on Thursday.

Imports for the same month saw a decrease of 4.5 percent, amounting to $4.665 billion as opposed to the $4.884 billion recorded in January 2023.

Consequently, the trade deficit contracted to $1.879 billion in January 2024, showcasing a significant 30 percent improvement from the $2.689 billion reported in the same month last year.

Gohar Ejaz, the caretaker minister for commerce, announced the trade figures on his social media account ‘X’, bypassing the Pakistan Bureau of Statistics (PBS), which usually releases the data on the first day of each month.

Over the initial seven months of the fiscal year (July-January 2023-24), total exports reached $17.766 billion, reflecting a 12 percent increase from the $15.831 billion recorded during the corresponding period in the preceding fiscal year. Meanwhile, imports witnessed a decline of 16 percent, totaling $30 billion compared to the $35.84 billion reported last year.

During this seven-month timeframe, the trade deficit, encompassing the difference between exports and imports, saw a notable reduction of 39 percent, amounting to $12.24 billion from the $20 billion reported in the corresponding period last year.

“Pakistan's global trade figures for the period Jul-Jan 2024 show that Pakistan is steadily expanding its international trade footprint, " minister Ejaz said.

"Exports totaled $17.766 billion, up 12 percent from $15.831 billion during the same period in the previous FY. Imports contracted by -16 percent to $30.010 billion as compared to $35.836 billion in the same period last FY."

"The overall trade deficit has decreased by -39 percent to $12.244 billion as compared to $20.005 billion in the previous year.”

Highlighting the absolute gains, Ejaz detailed, “During Jul-Jan 2024, exports increased by almost $2 billion, imports decreased by about $6 billion, while the trade deficit contracted by $7.8 billion.”

Expressing confidence in the nation's trajectory, Ejaz asserted, “These positive trends reflect our government's unwavering commitment to promoting trade and economic growth. We will continue to implement policies that support our exporters, diversify our export base, and enhance trade facilitation.

I am confident that Pakistan is on the right track to achieving its trade goals and becoming a leading player in the global economy.”