Pakistan’s Exports Rise by 12.57% as Trade Deficit Narrows in Jul-Nov 2024

ISLAMABAD: As Pakistan’s exports rise by 12.57%, the overall trade performance has shown a mixed but promising trend in the first five months of the fiscal year 2024-25, with significant improvements in exports and a narrowing trade deficit. The data, released by the Pakistan Bureau of Statistics (PBS), reflects both year-on-year (YoY) growth and monthly fluctuations, providing a comprehensive picture of the country’s trade dynamics.

پاکستان کی برآمدات برائے مالی سال 25-2024 کے پہلے پانچ مہینوں (جولائی تا نومبر) کے دوران %12.57 اضافہ دیکھا گیا ہے، جو کہ اب 13.691$ ارب تک پہنچ گئیں، جبکہ نومبر 2024 میں سالانہ بنیادوں پر برآمدات میں %8.98 اضافہ ہوا، لیکن ماہانہ بنیادوں پر %5.97 کمی ریکارڈ کی گئی۔ تجارتی خسارہ اسی عرصے کے دوران %7.39 کم ہو کر 8.651$ ارب پر آگیا، جبکہ نومبر 2024 میں یہ خسارہ %18.60 کم ہو کر 1.589$ ارب رہا۔ درآمدات میں جولائی تا نومبر %3.90 اضافہ ہوا، جو 22.342$ ارب تک پہنچ گئیں، لیکن نومبر 2024 میں سالانہ بنیادوں پر اسمیں %2.92 کمی دیکھی گئی۔

Pakistan’s Exports Rise by 12.57% in July-November FY25

During July to November FY25, Pakistan’s exports grew by 12.57%, reaching $13.691 billion compared to $12.162 billion in the same period last year. This substantial growth highlights the country’s efforts to enhance its export potential, supported by improved production and favorable international demand.

In November 2024, exports climbed to $2.804 billion, marking an 8.98% YoY increase compared to $2.573 billion in November 2023. However, on a month-on-month (MoM) basis, exports dipped by 5.97%, dropping from $2.982 billion in October 2024.

Imports See Modest Increase in Jul-Nov FY25

Imports during the first five months of FY25 also increased, albeit at a slower pace of 3.90%, standing at $22.342 billion compared to $21.503 billion during the same period in FY24. This rise in imports underscores continued demand for essential goods and raw materials.

In November 2024, imports were recorded at $4.393 billion, reflecting a 2.92% YoY decline from $4.525 billion in November 2023. On a MoM basis, imports decreased by 3.83%, falling from $4.568 billion in October 2024.

Trade Deficit Jul-Nov FY25 Narrows by 7.39%

Pakistan’s trade deficit showed improvement in the July-November period, narrowing by 7.39% to $8.651 billion compared to $9.341 billion during the same period of the previous fiscal year.

The narrowing trend was particularly notable in November 2024, where the deficit stood at $1.589 billion, an 18.60% YoY decrease from $1.952 billion in November 2023. However, on a MoM basis, the trade deficit widened slightly by 0.19%, rising from $1.586 billion in October 2024.

Month-on-Month Variations in Trade Parameters

November 2024 witnessed contrasting monthly trends in exports and imports:
Exports: Declined by 5.97% to $2.804 billion, down from $2.982 billion in October 2024.
Imports: Decreased by 3.83% to $4.393 billion, compared to $4.568 billion in October 2024.

Trends Indicate a Better Balance of Trade

The data showcases Pakistan’s efforts to boost its export sector, which is pivotal for improving the country’s balance of payments. The narrowing trade deficit, particularly the significant YoY improvement in November 2024, is an encouraging sign of economic stability. However, the slight MoM decline in exports signals the need for sustained efforts to maintain momentum and address external challenges such as fluctuating global demand and currency volatility.

The Road Ahead for Better Trade Performance

To further strengthen trade performance, Pakistan needs to:
• Expand its export base with value-added goods.
• Explore new markets to reduce reliance on traditional trade partners.
• Encourage policies that support local industries and improve production efficiency.

The rising exports with a reduced trade deficit in the first five months of FY25 provide a positive outlook, but maintaining these gains will require consistent policy measures and economic reforms.

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