Pakistan’s export sector showed robust growth during the first seven months (July-January) of the fiscal year 2024-25, registering a 9.98% increase to reach $19.551 billion compared to $17.777 billion in the corresponding period of the previous fiscal year.
However, the trade deficit also widened by 2.84% during the same period, rising from $13.116 billion to $13.488 billion. In January 2025 alone, the deficit surged by 17.78% year-on-year, expanding from $1.964 billion last January to $2.313 billion this January.
Export Performance Overview
The strong performance in exports highlights a positive trend in Pakistan’s trade, with overall growth reaching nearly 10% during the July-January period. This marks a significant year-on-year improvement and underlines the country’s growing presence in international markets.
Import Growth and Trade Imbalance
On the import side, Pakistan recorded a 6.95% increase, with imports rising from $30.893 billion in the previous fiscal period to $33.039 billion in the current one. January 2025 saw imports grow by 10.04%, from $4.756 billion to $5.233 billion compared to the same month last year. While exports grew by 4.59% in January from $2.792 billion to $2.920 billion the more rapid increase in imports contributed to the widening trade deficit.
Implications for the Economy
The rising trade deficit, despite the encouraging export growth, presents both challenges and opportunities. While increased exports suggest enhanced global competitiveness, the growing imbalance with imports could indicate underlying issues such as domestic demand pressures or elevated import dependency. Policymakers will likely need to address these disparities to ensure sustainable economic stability.
The Pakistan Bureau of Statistics (PBS) continues to monitor these trends, providing critical insights into the country’s trade dynamics as Pakistan strives to balance growth with fiscal responsibility.