Exports up 10% to $19.55bn in July-Jan 2025
1. Imports rise by 6.95% to $33 billion from $30.9 billion, data from PBS shows
ISLAMABAD: Pakistan’s exports increased by 10% to $19.55 billion in the first seven months of the current fiscal year, compared to $17.77 billion in the same period last year, indicating a positive trend for the economy and offering some relief in managing external accounts.
Imports, however, grew by 6.95%, reaching $33 billion, up from $30.9 billion, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday. Despite the rise in exports, the trade deficit— the gap between exports and imports—widened slightly by 2.84% to $13.49 billion.
This development suggests an improvement in the nation’s external financial position, particularly regarding the current account deficit (CAD), which has been a longstanding concern for Pakistan’s economy. Since August 2024, Pakistan’s CAD has been in surplus, driven by higher remittances and a better trade balance. In December 2024, the CAD surplus stood at $582 million, up from $279 million in December 2023.
Exports in January 2025 totaled $2.92 billion, reflecting a modest year-on-year increase of 4.59%, while imports surged by 10% to $5.23 billion, compared to $4.76 billion in January 2024. This resulted in a 17.78% increase in the monthly trade deficit, which reached $2.31 billion, up from $1.96 billion.
On a month-over-month basis, exports showed little growth, inching up from $2.91 billion in December 2024. Imports, however, saw a 2.3% decline from $5.36 billion in the previous month.
The growing trade deficit presents a challenge for policymakers, who are already dealing with external account pressures and economic vulnerabilities. Experts emphasize the need for a strategic approach to boost export competitiveness, including product diversification and market expansion. "Without targeted reforms to enhance export performance, Pakistan’s trade imbalance will continue to strain foreign exchange reserves and economic stability," said an industry analyst. With global economic uncertainty and rising import costs, policymakers will need to balance sustaining essential imports while addressing the deficit to safeguard the country’s financial stability.
