Merchandise exports surged nearly 16% in August, reaching $2.74 billion, up from $2.36 billion in the same month last year, as reported by the Pakistan Bureau of Statistics (PBS) on Tuesday.
This growth was driven by increased international orders and exchange rate stability. In July, exports had already risen by 11.83%.
On a month-on-month basis, exports saw a substantial 18.9% increase in August compared to the previous month.
For July-August FY25, export proceeds totaled $5.05 billion, a 14% increase from $4.43 billion in the same period last year.
The trade deficit narrowed by 20.54% to $1.67 billion in August.
In FY24, Pakistan’s merchandise exports grew by 10.54% to $30.64 billion, up from $27.72 billion in the previous year.
Exports steadily increased from July 2023 but turned negative in January. This downward trend persisted until April, after which growth resumed in May and continued into June.
The country achieved its highest-ever exports in 2021-22, reaching $31.78 billion. However, the following year saw a decline to $27.54 billion.
The recent surge in exports contradicts claims by exporter associations that tax measures in the 2024-25 budget would negatively impact export earnings.
Trade Deficit
PBS data shows imports grew by 5.67% to $8.63 billion in July-August FY25, compared to $8.16 billion last year. In August, imports declined by 1.25% to $4.42 billion from $4.47 billion in the same month last year.
On a month-on-month basis, imports increased by 4.92%. In FY24, imports slightly decreased by 0.84% to $54.73 billion, down from $55.19 billion in FY23.
The trade deficit for July-August FY25 decreased by 4.30% to $3.57 billion from $3.74 billion in the previous year. In August, the deficit shrank by 20.54% to $1.67 billion from $2.11 billion last year.
The trade gap contracted to $24.08 billion in FY24 from $27.47 billion in the prior year.
Rice Exports
Meanwhile, Commerce Minister Jam Kamal has urged rice exporters to aim for a $5 billion export target for the current fiscal year. In FY24, rice exports reached $4 billion. The significant contribution from rice exports pushed overall agriculture exports to $8 billion in FY24.
Sectoral Council for Rice Chairman Shahzad Malik expressed optimism, stating that with favorable climatic conditions and continued export growth, Pakistan could potentially reach a $10 billion rice export target by 2030.
