ISLAMABAD: Pakistan’s exports in January 2025 amounted to $2.95 billion, reflecting a 6% year-on-year (YoY) increase. However, imports rose at a faster pace of 11% YoY, widening the trade deficit by 18% YoY to $2.3 billion.
On a month-on-month (MoM) basis, exports saw a modest rise of 1%, while imports declined by 2%. Petroleum imports increased by 3% YoY but fell by 12% MoM, contributing to the mixed trade trends.
According to data from the Pakistan Bureau of Statistics (PBS), exports in January totaled $2.95 billion, while imports reached $5.27 billion. This marked an 11% YoY increase in imports but a 2% decline compared to December 2024.
7MFY25 Trade Overview
For the first seven months of FY25 (7MFY25), Pakistan’s trade deficit expanded by 2.9% YoY to $13.5 billion. Total exports rose by 10% YoY to $19.58 billion, while imports grew by 7% YoY to $33.08 billion.
Sectoral Performance in Exports
- Textiles: Textile exports reached $1.69 billion in January 2025, marking a 16% YoY and 14% MoM increase. This was the highest monthly textile export figure since June 2022, reinforcing its role as the backbone of the export sector.
- Food Exports: Food exports declined sharply by 17% YoY and 19% MoM to $654 million. Within this segment, rice and meat exports recorded significant drops, impacting overall performance.
- Manufactured Goods: Manufactured goods exports rose by 18% YoY to $353 million but fell by 10% MoM. Petroleum exports were recorded at $67 million, down 2% YoY but up 93% MoM due to higher shipments of refined petroleum products.
- Other Exports: Other exports stood at $193 million, showing a 5% YoY increase but a 5% MoM decline.
For 7MFY25, total exports grew 10% YoY to $19.58 billion, driven primarily by textiles and manufactured goods.
Sectoral Performance in Imports
Imports in January 2025 were recorded at $5.27 billion, an 11% YoY increase but a 2% MoM decline due to reduced energy imports.
- Petroleum Imports: Petroleum imports remained a key driver, totaling $1.37 billion in January 2025, up 3% YoY but down 12% MoM.
- Petroleum product imports rose by 21% YoY to $518 million but declined 11% MoM.
- Crude oil imports increased 19% YoY to $436 million, though they dropped 17% MoM.
- LNG imports fell 30% YoY to $313 million, despite a 5% MoM rise.
- LPG imports grew by 21% YoY to $106 million but dipped 2% MoM.
For 7MFY25, petroleum imports totaled $9.46 billion, a 1.3% YoY increase.
- Machinery Imports: Machinery imports reached $888 million in January 2025, rising 18% YoY and 3% MoM.
- Power generating machinery imports surged 68% YoY but declined 26% MoM.
- Textile machinery imports recorded a significant 101% YoY increase, reflecting robust demand in the sector.
- Telecom imports fell 17% YoY and 4% MoM, indicating a slowdown in that segment.
- Electrical machinery imports rose 10% YoY, signaling steady growth in infrastructure and industrial development.
For 7MFY25, machinery imports totaled $5.1 billion, reflecting a 16% YoY increase.
Conclusion
While Pakistan’s export growth in textiles and manufactured goods has been encouraging, the widening trade deficit highlights the challenges posed by rising imports, particularly in petroleum and machinery. Sustained focus on boosting export diversification and managing import reliance will be critical to addressing the trade imbalance.
