Islamabad, Apr 4, 2025: Pakistan’s export sector has demonstrated resilience in the first nine months of the fiscal year 2024-25, with exports increased by 7.7% to $24.7 billion. This growth is primarily attributed to robust performances in the textile and rice industries.
As well as other key agricultural products. Policymakers are optimistic that total exports will exceed $33 billion by June, aiming to maintain this positive trajectory despite prevailing economic challenges.
Conversely, imports during the same period rose by 6.3%, reaching $42.6 billion. The surge is largely due to heightened demand for machinery, fuel, and raw materials, which has further strained the nation’s external financial position.
Consequently, the trade deficit expanded by 4.5% to $17.9 billion, highlighting ongoing difficulties in balancing foreign exchange flows.
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In March 2025, exports experienced a year-on-year increase of 1.95%, totaling $2.617 billion, while imports declined by 2.45% to $4.736 billion. This resulted in a 7.4% reduction in the trade deficit for the month.
Narrowing it to $2.12 billion and providing some relief after consecutive months of widening deficits. On a month-over-month basis, exports grew by 5.1% from February.
Whereas imports saw a slight decrease of 1.1%, according to the Pakistan Bureau of Statistics (PBS).
The services sector presented mixed outcomes. In the first eight months of FY2024-25, services exports increased by 6.03% to $5.46 billion, while imports surged by 12% to $7.71 billion.
This led to a 29.85% widening of the services trade deficit, amounting to $2.25 billion. Specifically, in February 2025, services exports rose by 5% to $710 million, whereas imports jumped by 32.7% to $1.01 billion.
Despite the expanding trade gap, Pakistan’s external account position remains stable, bolstered by exports increased and a significant rise in remittances.
The current account recorded a surplus of $691 million during July-February FY2025, reversing a $1.73 billion deficit from the previous year.
However, February saw a return to a $12 million deficit, compared to a $71 million surplus in February 2024.
Workers’ remittances experienced a substantial 32.5% surge, reaching $24 billion in the first eight months of FY2025, up from $18.1 billion in the corresponding period last year.
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These inflows have been instrumental in supporting foreign exchange reserves and mitigating the impact of the trade deficit.
As Pakistan navigates these economic dynamics, sustaining export growth while managing import pressures remains crucial.
The government’s focus on enhancing trade policies and diversifying export markets will be pivotal in achieving a more balanced and sustainable external account position.
