During the first seven months of the current fiscal year (July–January), Pakistan recorded a widening trade deficit as imports grew faster than exports, according to data released by the Pakistan Bureau of Statistics (PBS).
Exports Decline 7.1% in July–January
Pakistan’s exports totaled USD 18.19 billion during July–January, marking a 7.1% decline compared to USD 19.58 billion in the same period last fiscal year.
However, export performance showed improvement in January. The country exported goods worth USD 3.061 billion in January, reflecting:
- 3.7% increase compared to USD 2.95 billion in January last year
- Strong 35% rise compared to December’s USD 2.26 billion
The textile sector maintained the largest share in total exports and showed notable growth in value-added segments during January. Other sectors that posted significant export gains include:
- Sports goods
- Chemicals
- Pharmaceuticals
- Cement
- Engineering products
Imports Increase 9.4% During the Period
On the import side, Pakistan’s imports reached USD 40.23 billion during July–January, registering a 9.4% increase compared to USD 36.77 billion in the same period last year.
In January alone, imports stood at USD 5.86 billion, showing a marginal 1.4% year-on-year decrease compared to January last year.
Trade Deficit Expands by 28.2%
As a result of declining exports and rising imports, Pakistan’s trade deficit widened significantly. During July–January, the trade deficit reached USD 22.038 billion, marking a 28.2% increase compared to USD 17.18 billion in the same period last fiscal year. In January, the monthly trade deficit stood at USD 2.72 billion.
Conclusion
The latest trade data highlights ongoing challenges in Pakistan’s external sector. While January showed encouraging export growth, overall exports continue to lag behind imports. The faster rise in imports has contributed to a widening trade deficit, putting additional pressure on the country’s trade balance.
