Merchandise exports saw a year-on-year increase of 10.02 percent in April, rebounding after a growth slowdown in the previous month, as per data released by the Pakistan Bureau of Statistics on Thursday.
Export earnings have been on a double-digit growth trajectory since December but experienced a 9 percent decline in March. In April, exports reached $2.35 billion, up from $2.14 billion in the same month last year.
During the first 10 months of the current fiscal year, exports totaled $25.28 billion, marking a 9.10 percent increase from $23.17 billion in the corresponding period last year.
The trade deficit widened significantly by 180.58 percent year-on-year to $2.37 billion in April, compared to $846 million in April last year, primarily due to a rebound in import growth while exports remained around $2.3 billion.
However, the trade deficit narrowed by 17.09 percent to $19.52 billion in the first 10 months of the current fiscal year, down from $23.54 billion in the same period last year.
The IMF’s outlook for Pakistan’s export proceeds over the next five years projects a more conservative growth trajectory compared to the ambitious target set by the commerce ministry of achieving $100 billion in exports by the end of FY28.
The fund forecasts gradual export growth from $30.84 billion in FY24 to $32.35 billion in FY25, $34.68 billion in FY26, $37.25 billion in FY27, and $39.46 billion in FY28.
Under the caretaker government’s administration, export earnings increased through various measures, including expediting sales tax refunds for exporters.
The FBR disbursed Rs369 billion in the first nine months of the current fiscal year, up from Rs254 billion in the same period last year.
The commerce ministry is yet to unveil a strategic framework for initiatives such as regional competitive energy pricing, working capital support, expedited refund payments, enhanced market access, and product diversification.
Imports surged by 58.43 percent to $4.72 billion in April 2024, up from $2.98 billion in April 2023, following the government’s easing of import restrictions in recent months.
