Pakistan’s trade deficit expands slightly in first quarter of FY25

Pakistan recorded a modest increase in its trade deficit which reached $5.4 billion during the first three months (July-September) of the current fiscal year 2024-25, according to the data released by the Pakistan Bureau of Statistics (PBS). 

This marks a 4.2% increase from the $5.21 billion deficit recorded in the corresponding period of the previous year FY2023-24.

In detail, the period from July to September 2024 saw Pakistani exports rise by 14%, totaling $7.88 billion, up from $6.90 billion a year earlier. This growth in exports reflects a strengthening in the global demand for Pakistani goods.

However, the import bill also rose nearly 10% to $13.31 billion during the same period compared to $12.12 billion in the first quarter of the previous fiscal year. 

The increase in imports was largely fueled by higher costs for essential goods such as petroleum products, raw materials for manufacturing, and machinery, indicating a robust domestic demand and ongoing industrial activities.

In September 2024 alone, the trade deficit widened by 20.35% year-on-year, reaching $1.78 billion from $1.48 billion. This increase was driven by a rise in imports and a robust growth in exports. 

Exports climbed by 13.52% to $2.81 billion from $2.47 billion in September of the previous year, while imports surged by 16% to $4.59 billion from $3.95 billion.

Additionally, the trade deficit marginally increased by 1.9% on a month-on-month basis, standing at $1.78 billion in September compared to $1.75 billion in August. 

Exports in September showed a modest increase of 1.6% from August’s $2.76 billion, and imports also edged up by 1.7% from $4.51 billion in the preceding month.