Trade Deficit Spikes By Over 20% in September 2024

Islamabad, Oct 2: Trade Deficit Spikes by Over 20% in September 2024

Data from the Pakistan Bureau of Statistics (PBS) shows that the trade deficit increased by 20.4 percent compared to the $1.47 billion deficit recorded in September 2023.

Exports in September rose by 13.5 per cent, reaching $2.81 billion, up from $2.47 billion in September 2023. Compared to August 2024, exports also saw a slight increase of 1.6 per cent, reaching $2.76 billion.

Meanwhile, imports during September increased by 16.1 per cent, reaching $4.59 billion compared to $3.95 billion in the same month last year. Compared to August 2024, imports rose by 1.7 per cent from $4.51 billion.

Several factors contributed to the increase in the trade deficit this month. The rise in global commodity prices has resulted in higher import costs, particularly in essential sectors like energy and food.

As the demand for these imports continues to exceed domestic production, the financial strain on the economy becomes more evident.

Additionally, ongoing geopolitical tensions and supply chain disruptions have intensified the situation, making it harder for Pakistan to obtain necessary goods at reasonable prices.

On the export side, Pakistan has faced difficulties in boosting its international sales, mainly due to a lack of competitiveness and market access.

The manufacturing sector has struggled to ramp up production to meet global demands, leading to stagnation in exports. This stagnation, combined with rising import costs, has significantly widened the trade deficit, underscoring the urgent need for structural reforms.