Karachi, September 3, 2024 – Pakistan recorded a significant increase in its export earnings during the first two months (July–August) of the fiscal year 2024-25, showcasing a robust economic performance.
According to data released by the Pakistan Bureau of Statistics (PBS), the country’s exports surged by 14%, reaching $5.05 billion, compared to $4.43 billion in the corresponding period of the last fiscal year.
The export growth reflects Pakistan’s strong position in the international market, bolstered by various government incentives and favorable global economic conditions. Key sectors such as textiles, agricultural products, and manufactured goods were primary contributors to this rise, capitalizing on increased demand from major trading partners in Europe, North America, and Asia.
On the import front, Pakistan’s import bill also saw a rise, albeit at a slower pace. The total imports for July-August 2024-25 amounted to $8.63 billion, marking a 5.67% increase from the $8.17 billion recorded during the same period in the previous fiscal year. The rise in imports can be attributed to higher costs of raw materials and capital goods necessary for supporting the export-oriented sectors and domestic consumption.
Despite the increase in imports, the growth in exports helped narrow the trade deficit, a persistent challenge for Pakistan’s economy. The trade deficit for the first two months of FY25 was recorded at $3.58 billion, a 4.2% reduction from the $3.74 billion deficit during the same months of the previous fiscal year. This narrowing of the trade gap indicates an improving balance of payments scenario, contributing to a more sustainable economic outlook.
On a year-on-year (YoY) basis, the figures for August 2024 were particularly encouraging. Exports rose by 16% to $2.74 billion, up from $2.37 billion in August 2023. Meanwhile, the import bill for August 2024 saw a slight decline of 1.25%, totaling $4.42 billion compared to $4.47 billion in the same month last year. Consequently, the trade deficit for August 2024 shrank significantly by 20.54%, reducing to $1.67 billion from $2.11 billion in August 2023.
Month-on-month (MoM) comparisons also highlighted positive trends. Exports in August 2024 increased by 19% compared to July 2024, while imports rose by 5%. These movements resulted in a 12% reduction in the trade deficit on a monthly basis, reflecting an encouraging trajectory towards economic stability.
Analysts believe that the sustained growth in exports, coupled with the controlled rise in imports, positions Pakistan well to achieve its fiscal targets. However, they caution that global economic uncertainties and domestic challenges, such as inflation and currency volatility, could impact future trade performance.
As Pakistan continues to build on these gains, the focus remains on further diversifying its export base and enhancing trade relations with key partners to sustain this positive momentum.
