The trade data for July 2024, the first month of the current financial year, reveals a widening trade deficit, according to the Pakistan Bureau of Statistics.
The trade deficit expanded by 19.7% on an annual basis, reaching $1.95 billion compared to $1.63 billion in the same month last year.
The bureau of statistics reported that exports in July amounted to $2.308 billion, marking an 11.83% increase from July 2023. However, this was a decline of 9.77% from June 2024, when exports were recorded at $2.55 billion.
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Imports in July also saw a significant increase, rising by 15.30% to $4.25 billion compared to the previous year. Despite this year-on-year increase, there was a notable month-on-month decrease in imports, which fell by 14.27% from $4.96 billion in June 2024.
The widening trade deficit is a cause for concern, reflecting both the increased import activity and the challenges in sustaining export growth. However, the month-on-month data suggests a potential easing of the deficit, with a 19.05% decrease in July compared to June.
Meanwhile, the State Bank of Pakistan (SBP) reported a modest increase in its foreign exchange reserves, which rose by $75 million or 0.83% week-on-week to reach $9.1 billion as of July 26, 2024.
This positive shift follows a week of stable fluctuations in the country's foreign reserves. In contrast, the total reserves held by Pakistan saw a slight increase of $56.3 million or 0.39%, bringing the cumulative figure to $14.39 billion.
