Trade deficit narrows by 43pc, exports decline by 12.71pc in FY23

ISLAMABAD: The trade deficit witnessed a decline of 43.03 percent during the fiscal year 2022-23 as compared to the previous year (2021-22), the Pakistan Bureau of Statistics (PBS) reported.

The trade deficit during July-June (2022-23) was recorded at $27.547 billion against the deficit of $48.354 billion in July-June (2021-22), a decline of 43.03 percent, the official news agency reported.

The exports during the period were recorded at $27.744 billion against $31.782 billion last year, showing a decline of 12.71 percent.

On the other hand, the imports witnessed a sharp decline of 31 percent by falling from $80.136 billion last year to $55.291 billion during the fiscal year 2022-23.

On a year-on-year basis, the exports from the country witnessed a decline of 18.72 percent and were recorded at $2.366 billion in June 2023 against the exports of $2.911 billion in June 2022.

The imports also decreased to $4.180 billion in June 2023 from $7.857 billion in June 2022, showing negative growth of 46.80 percent.

On a month-on-month basis, the exports during June 2023, however, increased by 7.55 percent when compared to the exports of $2.200 billion in May 2023.

The imports declined by 3.42 percent in June 2023 when compared to the imports of $4.328 billion in May 2023, according to the data.

Meanwhile, the deficit in services trade declined by 88.26 percent during the first eleven month of fiscal year (2022-23) compared to the corresponding period of last fiscal year. The services trade deficit was recorded at $607.67 million against the deficit of $5,175.24 million last year.

The services exports during the period increased by 3.38 percent by going up from $6,438.33 million in 2021-22 to $6,655.82 million in first eleven month of FY2022-23, according to PBS data.

On the other hand, the imports declined from $11,613.57 million to $7,263.49 million in FY2023, showing negative growth of 37.46 percent.