Pakistan’s merchandise exports saw a notable increase of 11.83% in the first month of the current fiscal year 2024-25, rising to $2.31 billion in July, up from $2.06 billion during the same month last year, according to the latest figures from the Pakistan Bureau of Statistics (PBS).
However, despite this year-on-year growth, a month-on-month comparison paints a different picture, with exports declining by 9.77% in July compared to June 2024.
In the fiscal year FY24, Pakistan’s exports grew by 10.54%, reaching $30.64 billion, up from $27.72 billion in FY23. This growth was consistent from July 2023 until January 2024, when exports began to decline. The downward trend continued until April, but growth resumed in May and persisted into June.
The country’s export sector reached its peak in the fiscal year 2021-22, achieving a record $31.78 billion. However, the following year experienced a decline, with exports dropping to $27.54 billion.
Azma Bokhari dismisses the idea of a judicial commission to investigate May 9 incidents While exports have demonstrated resilience, the trade deficit has widened significantly. In July 2024, the trade gap expanded by 19.71% to $1.95 billion, up from $1.63 billion in the same month last year. This was largely due to a substantial increase in imports, which rose by 15.30% to $4.25 billion in July, compared to $3.69 billion the previous year. However, month-on-month, imports declined by 14.27%.
For FY24, total imports slightly decreased by 0.84% to $54.73 billion from $55.19 billion in FY23. As a result, the trade deficit for FY24 narrowed to $24.08 billion from $27.47 billion the previous year.
The July 2024 export data presents a mixed performance, reflecting broader economic challenges. While year-on-year growth indicates a positive trajectory, the month-on-month decline underscores volatility in the global market and domestic economic conditions.
The decline in exports from June to July highlights the fragility of the export sector, which continues to face economic headwinds such as fluctuating global demand, supply chain disruptions, and domestic economic policies.
Scattered rain reported in various city areas In response to the concerns of the export sector, the government has expressed its willingness to engage with exporters’ associations to address their issues. Efforts are being made to balance necessary fiscal measures while maintaining export competitiveness.
Pakistan’s export sector demonstrated notable resilience with a significant increase in the first month of the new fiscal year (FY25). However, the widening trade deficit and concerns over new tax measures present challenges that must be addressed to sustain this growth. The government’s proactive engagement with exporters will be critical in navigating these challenges and ensuring a stable economic environment conducive to continued export growth.
