Debt-trapped Pakistan slashes trade deficit by 43 per cent in FY 23

Islamabad: Cash-strapped Pakistan has slashed its trade deficit by a staggering 43 per cent to USD 27.55 billion in the fiscal year 2023, according to a media report on Wednesday.

The government’s stringent control over imports played a vital role in this significant reduction, as it aimed to stabilise the



country’s critically low foreign exchange reserves and mitigate the risk of default.

In the previous fiscal year 2022, the trade deficit had widened to a daunting USD 48.35 billion, causing concern about the country’s economic stability, The Express Tribune newspaper reported.