ISLAMABAD: Pakistan’s trade deficit with nine regional countries swelled by 49 per cent to $9.506 billion in FY24 from $6.382bn in the preceding fiscal year due to a sharp increase in imports from China and India, causing major concerns for policymakers.
Exports to regional countries, especially China, experienced significant growth during the review period. However, exports to other regional countries continued to decline during the year under review, according to data compiled by the State Bank of Pakistan.
The value of Pakistan’s exports to the nine regional countries Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives rose 20.02pc to $4.334bn in July-June (2023-24) from $3.611bn in the corresponding period last year.
Contrary to this, imports surged 38.49pc to $13.840bn in FY24 from $9.993bn over the corresponding period of last year. This shows an increase in trade deficit with maximum countries in FY24.
Imports from China surge 40pc to $13.5bn in FY24
Imports from China also increased by 39.78pc to $13.506bn in FY24 from $9.662bn in the corresponding months of last year.
The bulk of imports in the region are also sourced from China, followed by India. The share of imports from China stood at 97.58pc in FY24.
Pakistan’s exports to China rose 33.68pc to $2.707bn in FY24 from $2.025bn over the corresponding period of last year. In FY24, Pakistan’s regional share of exports to China was 62.45pc.
Pakistan’s imports from India rose 8.866pc to $206.89 million in the FY24, up from $190.04m in the corresponding period last year. Meanwhile, exports to India amounted to $3.669m in the outgoing fiscal year, a significant increase from $0.329m in the same period the previous year.
Exports to Afghanistan increased 6.07pc to $554.008m in FY24 from $522.271m last year. Pakistan has allowed exports of maximum products in Pakistani rupee. A negligible import was recorded in FY24 at $11.923m against $15.277m over the previous year, showing a negative growth of 21.95pc.
Kabul recently banned fruit exports to Pakistan following the revival of duty and taxes on imports of fruits and vegetables from Afghanistan.
In FY24, Iran exported negligible goods. Most of Tehran’s trade is conducted through informal channels.
Exports to Bangladesh fell 13.27pc to $666.516m in FY24 from $768.548m. Imports also dipped 26.73pc to $56.555m from $77.182m in FY23.
Exports to Sri Lanka surged 37.83pc to $391.226m in FY24 from $283.882m over the last year. Imports from Sri Lanka rose by 21.53pc to $58.302m from $47.974m over the previous year.
Exports to Nepal decreased 4.67pc to $2.711m in FY24, down from $2.844m in the previous year. The imports from Nepal are very negligible during the year under review.
Conversely, exports to the Maldives increased by 7.86 to $9.212m from $8.540m over the same period last year.
Published in Dawn, July 25th, 2024
