Pakistan’s export of goods increased by 13.5 per cent to $2.805 billion in September 2024, marking the 13th straight month of growth. This positive trend is a significant development for the country’s economy, particularly in addressing its current account deficit (CAD) challenges. Analysts believe that the consistent rise in exports could help alleviate external financing pressures and contribute to improving the country’s economic stability.
The latest data from the Pakistan Bureau of Statistics (PBS) reveals that exports have been on the rise since September 2023, with the lowest growth at 1.67 percent and the highest at 29.27 percent. However, imports also saw a significant increase of 16.08 percent to $4.585 billion in September 2024, leading to a widened trade deficit of 22.35 percent year-on-year, reaching $1.78 billion.
While the boost in exports is a positive sign, the trade deficit has expanded. The cumulative exports for the July-September 2024/25 period rose by 14.11 percent, reaching $7.875 billion, while imports increased by 9.86 percent to $13.31 billion. Consequently, the trade deficit for the first quarter of FY25 stood at $5.435 billion, up 4.24 percent from the same period last fiscal year.
In addition to goods, the PBS also released data on trade in services, showing a services trade deficit. Pakistan imported $1.724 billion worth of services and exported $1.252 billion, resulting in a deficit of $471.7 million. However, this deficit has seen a slight improvement compared to the same period last year.
In August 2024, services exports totaled $619.7 million, while imports amounted to $901 million, creating a deficit of $281 million. This marked a 2.1 percent decline in exports and a 9.4 percent rise in imports compared to July 2024.