Pakistan’s Food Trade Deficit Widens as Exports Fall

Food exports declined on a year-on-year basis during the first seven months of the current fiscal year, while food imports increased, according to data released by the Pakistan Bureau of Statistics and the State Bank of Pakistan.
During the first seven months of the fiscal year, Pakistan recorded food exports worth $2.989 billion, marking a 35 percent decrease compared to $4.614 billion in the same period of the previous fiscal year. In January alone, food exports reached $624 million, down 4 percent from $654 million in January last year. However, on a month-on-month basis, food exports increased by 54 percent in January compared to $406 million in December, reflecting a significant recovery in export activity.
On the import side, the country’s food import bill surged during the same period. In the first seven months of the fiscal year, food imports totaled $5.502 billion, representing a 19 percent increase compared to $4.614 billion in the corresponding period last year. In January, food imports stood at $871 million, up 8 percent from $809 million recorded in January of the previous year. On a monthly basis, food imports rose by 11 percent from $783 million in December to $871 million in January.
Overall, the data indicates widening pressure on the trade balance in the food sector, as declining exports and rising imports continue to impact Pakistan’s external account during the current fiscal year.