Islamabad, October 2, 2024 – Pakistan has reported an impressive 14.11% growth in exports during the first quarter of the fiscal year 2024-25 (1QFY25), a significant indicator of the country’s economic resilience. According to data released by the Pakistan Bureau of Statistics (PBS), exports soared to $7.88 billion between July and September 2024, compared to $6.90 billion in the same period last fiscal year.
This robust expansion in exports reflects a commendable resurgence in Pakistan’s external trade performance, despite global economic uncertainties. Key sectors, including textiles, agriculture, and industrial goods, are believed to have contributed to this upward trajectory, bolstering the nation’s efforts to stabilize its economy. The government’s focus on export-oriented policies, combined with market diversification, appears to have played a pivotal role in driving this growth.
On the flip side, imports also witnessed a 10% increase, rising to $13.31 billion during the first three months of FY25, compared to $12.12 billion in the corresponding period of the previous year. This surge in imports—driven by heightened demand for energy, raw materials, and machinery—has somewhat overshadowed the export gains, leading to a widening of the trade deficit.
The trade deficit, a key indicator of the health of Pakistan’s external sector, expanded by 4.24%, reaching $5.44 billion in 1QFY25 as compared to $5.21 billion in the same period last fiscal year. The growing trade gap underscores persistent challenges in balancing imports and exports, particularly in the context of rising global commodity prices and internal economic reforms.
On a year-on-year (YoY) basis, exports for September 2024 surged by 13.52%, climbing to $2.81 billion from $2.47 billion in September 2023. However, the country’s imports in the same month rose sharply by 16%, amounting to $4.59 billion compared to $3.95 billion in September 2023. This led to a substantial 20.35% YoY widening of the trade deficit for September, further emphasizing the challenges Pakistan faces in curbing its import bill.
Month-on-month (MoM) figures for September 2024 also indicate modest growth in both exports and imports. Exports increased by 1.56% compared to August 2024, while imports rose by 1.69%. The MoM trade deficit grew by 1.89%, reflecting a consistent trend of widening trade imbalances.
As Pakistan grapples with external pressures and fluctuating global markets, the 14% export growth is a promising sign of economic vitality. However, the nation will need to address its rising import dependency and trade deficit to ensure sustainable long-term economic stability.
