ISLAMABAD: In the first eight months of the current fiscal year, Pakistan’s trade deficit with the nine regional nations increased by 10.98% to $5.415 billion from $4.879 billion during the same time the previous year.
The primary cause of the trade deficit during the period under consideration is the rise in imports from China and India. Data gathered by the State Bank shows that exports to regional nations, especially China, grew throughout the study period, while exports to other regional countries remained negative.
Pakistan’s exports to the nine nations in the area, which are Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives, increased in value by 20.58 percent to $2.911 billion between July and February of 2023–24 from $2.414 billion during the same period the previous year.
India and China imports increase between July and February
In contrast, imports increased 14.16 percent to $8.326 billion in 8MFY24 from $7.293 billion in the same period the previous year. This indicates a minor rise in the trade deficit with the greatest number of countries in FY24.
Over 60% of Pakistan’s regional exports are sent to China, with the remaining 8% going to the other eight nations.
From $1.334 billion during the same time last year to $1.895 billion in July-February FY24, exports to China climbed by 42%. Exports to China fell 27.3 percent in FY23 to $2.02 billion from $2.78 billion in FY22. In the post-Covid era, it was the first decline.
In addition, China’s imports rose 14.72 percent to $8.105 billion in 8MFY24 from $7.065 billion in the same months the previous year. In the region, China and India account for the majority of imports.
India’s imports into Pakistan rose by 10.47 percent to $138.72 million in 8MFY24 from $125.57 million in the same period the previous year. Compared to $0.161 million in the same period last year, exports to India were $0.23 million percent this year.
In 8MFY24, exports to Afghanistan decreased 7.68 percent from $346.52 million to $319.88 million.
Iran received a very little amount of exports in 8MFY24. The majority of trade with Tehran happens through unofficial means.
Bangladesh saw a 19.63% decline in exports, from $525.02 million to $421.94 million. Moreover, imports fell by 27% to $38.77 million from $53.26 million in 8MFY23. Exports to Sri Lanka reached $266.16 million, up 32.3 percent. From $35.34m to $38.73m, imports increased. Exports to Nepal increased 5.36 percent to $2.16 million in 8MFY24. Exports to the Maldives rose 11.96 percent, from $5.35 million to $5.99 million.
