Trade deficit with nine SCO states widens 41pc
ISLAMABAD: Pakistan’s trade deficit with nine Shanghai Cooperation Organisation (SCO) countries widened by over 41 per cent to $11.703 billion in FY24 from $8.298bn in the preceding fiscal year due to a sharp increase in imports from China, Russia and India.
The heads of state from SCO nations are in Islamabad to attend the 25th summit, which aims to strengthen multilateral cooperation among member states by focusing on major topics like terrorism, economic cooperation, and climate change.
Pakistan’s exports to the SCO countries, especially China, experienced a significant growth in FY24. However, exports to other countries continued to decline, according to data compiled by the State Bank of Pakistan.
The value of Pakistan’s exports to the nine SCO countries — China, India, Iran, Kazakhstan, Kirghizstan, Russia, Tajikistan, Uzbekistan, and Belarus — rose 32.4pc to $3.076bn in 2023-24 from $2.323bn in FY23.
Higher imports from China, Russia and India contribute to this gap
Contrary to this, imports surged 39.14pc to $14.779bn in FY24 from $10.621bn over the corresponding period of last year. This shows an increase in trade deficit with maximum countries 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 SCO countries are also sourced from China, followed by Russia, and India. The share of imports from China stood at 91.38pc in FY24.
Pakistan’s exports to China rose 33.68pc to $2.707bn in FY24 from $2.025bn in FY23. Pakistan’s regional share of exports to China was 63pc.
The imports from Russia swelled by 36.58pc to $1.011bn in FY24 from $740.18m in FY23. Contrary to this, exports to Russia fell by 10.89pc to $78.91m in FY24 compared to $88.56m in the preceding year.
Imports from India rose 8.866pc to $206.89 million in FY24, up from $190.04m in FY23. Meanwhile, exports to India amounted to $3.669m in the outgoing fiscal year, a significant increase from $0.329m in FY23.
Kazakhstan had the highest export value of $183.16m in FY24 among central Asian states (CASs) compared to $95.22m in FY23, representing a 92.35pc rise. The value of imports from Kazakhstan fell 84.55pc to $0.677m against $4.383m in FY23.
Pakistan’s exports to Kyrgyzstan stood flat at $9.56m in FY24 against $9.86m in FY23, indicating a negligible decline. Imports from Kyrgyzstan grew 104pc to $0.357m in FY24 against $0.175m in the preceding year.
Exports to Tajikistan dipped 37.38pc to $14.46m in FY24 against $23.26m in the previous year. However, imports from Tajikistan rose 65.67pc to $6.13m against $3.70m over the corresponding months last year.
Pakistan and Tajikistan have already signed and implemented a transit trade agreement. Under the agreement, Tajikistan will import goods via Pakistani seaports.
Pakistan’s exports to Uzbekistan fell 2.05pc to $77.79m in FY24 against $79.42m in FY23. The imports increased by 91pc to $28.54m from $14.94m.
Uzbekistan has already implemented its transit trade agreement with Pakistan, under which 1,200 containers were imported in February.
Pakistan’s imports from Belarus stood at $27.64m in FY24 against $5.60m in FY23. The exports stood at $1.79m against $2.005m the previous year.
Trade with Iran is barter-based chiefly, and no official data is available to register the full potential of trade.
Published in Dawn, October 16th, 2024