ISLAMABAD: Pakistan’s exports witnessed a remarkable growth of 10.52 per cent during the first half (July–December) of the current fiscal year 2024-25, according to trade data released by the Pakistan Bureau of Statistics (PBS).
The PBS reported that exports reached $16.56 billion in the first half of FY25, compared to $14.98 billion during the same period of the previous fiscal year, the APP reported.
Performance in global markets
This increase highlights Pakistan’s improved performance in global markets despite various economic challenges.
On the other hand, Pakistan’s import bill rose by 6.11 per cent, climbing to $27.73 billion in the first half of FY25, up from $26.14 billion during the corresponding period of FY24, Pakistan’ state-run APP reported. This increase in imports contributed to a trade deficit of $11.18 billion for the first half of FY25, showing a slight rise of 0.18 per cent compared to the deficit of $11.15 billion recorded in the same period last year.
However, December 2024 saw a significant monthly widening of the trade deficit by 46.61 per cent, which rose to $2.44 billion from November’s $1.67 billion. The sharp increase in the deficit was primarily driven by a 17.44 per cent rise in the import bill, which reached $5.28 billion in December 2024, compared to $4.50 billion in November. Meanwhile, exports remained relatively flat, recording $2.84 billion in December 2024, marginally higher than November’s $2.83 billion.
On a year-on-year (YoY) basis, the trade deficit in December 2024 widened by 35 per cent. This was due to a 14 per cent surge in imports, which outpaced the modest export growth of 0.67 per cent compared to December 2023.
Diversification of export portfolio
The increase in exports reflects Pakistan’s focus on diversifying its export portfolio and improving competitiveness in international markets. However, the rising import bill underscores the challenges of managing trade imbalances, particularly in light of global economic uncertainties and domestic consumption needs.
With the second half of FY25 underway, Pakistan aims to sustain export growth while addressing the challenges posed by rising imports and a widening trade deficit. Policymakers are expected to implement measures to boost export-oriented industries and rationalize imports to ensure a more balanced trade outlook.
