ISLAMABAD: The first month of the new fiscal year saw a surge of 68.72 per cent in the country’s trade deficit with nine neighbouring countries, taking it to $1.041 billion from $0.617bn over the last year.

Experts attributed the jump mainly to an increase in imports from China and India.

Since the rise in deficit remains unchanged from the previous fiscal year, it may cause big problems for policymakers. In FY24, the trade deficit was recorded at $9.506 billion, up 49pc from $6.382bn in the preceding fiscal.

Exports to China, Afghanistan, Bangladesh and Sri Lanka saw an upward trend in July, but exports to other countries in the region continued to decline during the month under review, according to data compiled by the State Bank of Pakistan.

The value of Pakistan’s exports to nine countries — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives — rose 23.85pc to $464.75 million in July 2024 from $375.24m over the previous year.

In FY24, exports saw a 20.02pc increase to $4.334bn from $3.611bn in the corresponding period last year.

Contrary to this, imports surged 51.66pc to $1.506bn in July 2024 from $0.993bn over the same period in the previous fiscal.

Imports surged 38.49pc to $13.840bn in FY24 from $9.993bn over the same period of last year.

Imports from China grew by 53.63pc to $1.478bn in July 2024 from $0.962bn over the last year.

In FY24, imports from China stood at $13.506bn — up by 39.78pc from $9.662bn over the previous year.

The bulk of imports in the region are sourced from China, followed by India.

Pakistan’s exports to China rose 5.77pc to $160.10m in July 2024 from $151.36m over the same month in the preceding financial year.

In FY24, exports to China rose 33.68pc to $2.707bn from $2.025bn over the corresponding period of last year.

Trade with India

Pakistan’s imports from India saw an increase of 0.56pc to $17.75m in July 2024 from $17.65m over the last year. In FY24, imports from India rose 8.866pc to $206.89m ­— up from $190.04m in the same period last year.

Meanwhile, exports to India remained negligible at $0.005m in July 2024 against $0.019m over the last year. Exports to India stood at $3.669m during FY24, as against $0.329m in the same period the previous year.

Exports to Afghanistan increased 108pc to $88.06m in July 2024 from $42.17m last year. Islamabad has allowed exports of maximum products in Pakistani rupee. However, the growth is mainly due to the government’s decision to allow the export of sugar to Afghanistan.

Kabul recently banned fruit exports to Pakistan following the revival of duty and taxes.

Imports from Afghanistan stood at $1.41m in July 2024, as against $0.91m in July 2023.

No trade was recorded with Iran on official channels as most of the trade with that country is conducted through informal channels.

Exports to Bangladesh increased by 8.65pc to $57.86m in July 2024 while the amount for July ’23 was $53.25m. Exports to Sri Lanka surged 59.92pc to $32.72m in July 2024 from $20.46m over the last year.

Exports to Nepal increased 15.94pc to $124.55m in July 2024 from $107.43m in the previous year.

Published in Dawn, August 30th, 2024