By WEB DESK: In the first 11 months of the current fiscal year, Pakistan’s trade imbalance with nine regional nations increased from $5.992 billion to $8.411 billion, a 40.37 percent increase.
The increase in imports from China and India during the period under consideration can be linked to the surge in the trade deficit. Moreover, imports from neighboring nations increased somewhat from the previous year.
During the study period, exports to China and other regional nations increased. However, data published by the State Bank of Pakistan indicates that exports to other regional countries remained declining.
Pakistan’s exports to the nine regional nations—Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives—saw a 20.58 percent increase in value, from $3.352 billion to $4.042 billion, between July and May of 2023 and July of 2024.
Increased imports from India and China were a significant factor.
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In contrast, imports increased by 33.27 percent to $12.453 billion in 11MFY24 from $9.344 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. More than 60% of Pakistan’s regional exports are sent to China.
Furthermore, from $1.889 billion in July to May of FY24, exports to China climbed by 35.15 percent to $2.553 billion. Exports to China fell 27.3 percent in FY23 to $2.02 billion from $2.78 billion in FY22. It represented the initial decline in the post-Covid
Additionally, imports from China rose 34.45 percent to $12.148 billion in 11MFY24 from $9.039 billion in the same months the previous year. China and India are the region’s top suppliers of imports, respectively.
India’s imports into Pakistan rose to $189.07 million in 11MFY24 from $173.49 million in the same period the previous year, an 8.98% increase. This year’s exports to India were $3.550 million, up from $0.273 million in the same period last year.
From $478.62 million in exports to $507.94 million in 11MFY24, exports to Afghanistan climbed 6.13 percent. Iran received a very little amount of exports in 11MFY24. The majority of trade with Tehran happens through unofficial means.
Bangladesh saw a 14.57 percent decline in exports, from $709.05 million to $605.74 million. In 11MFY23, imports were $71.71 million, a decrease of 27.94 percent. Exports to Sri Lanka increased by 36.68 percent from $264.61 million to $361.69 million in 11MFY24. Over the prior year, Sri Lankan imports increased by 21.08 percent to $53.63 million from $44.29 million.
Shipments to Nepal decreased 7.94 percent from $2.77 million in the previous year to $2.55 million in the 11MFY24. Over the previous year, shipments to the Maldives rose 8.93 percent, from $7.72 million to $8.41 million.
