Pakistan’s merchandise exports experienced a significant increase of 11.83% in the first month of the current fiscal year, climbing to $2.31 billion from $2.06 billion in the same month last year, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
Despite this year-on-year growth, a month-on-month comparison reveals a different story, with exports declining by 9.77% compared to June.
Moreover, For the fiscal year 2024 (FY24), Pakistan’s exports grew by 10.54%, reaching $30.64 billion, up from $27.72 billion in the previous year. This growth was consistent from July 2023 until January, when exports turned negative. This downward trend continued until April. However, the trend reversed in May, with growth resuming and continuing into June.
Pakistan’s export sector peaked in the fiscal year 2021-22, achieving an unprecedented $31.78 billion. The subsequent year, however, saw a decline, with exports dropping to $27.54 billion.
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While exports have shown resilience, the trade gap has widened significantly. In July, the trade deficit expanded by 19.71% to $1.95 billion, compared to $1.63 billion in the same month last year. This was due to a substantial increase in imports, which grew by 15.30% to $4.25 billion in July, up from $3.69 billion in the same month last year. Month-on-month, however, imports declined by 14.27%.
Moreover, for FY24, the total imports slightly decreased by 0.84%, amounting to $54.73 billion compared to $55.19 billion in FY23. Consequently, the trade deficit for FY24 narrowed to $24.08 billion from $27.47 billion in the previous year.
The July export data highlights a mixed performance, reflecting broader economic challenges. While the year-on-year growth suggests a positive trajectory, the month-on-month decline indicates volatility in the global market and domestic economic conditions.
