Exports
ISLAMABAD: Pakistan’s exports have experienced a notable 7.7% growth, reaching $24.7 billion during the first nine months of fiscal year 2024-25. This performance has been largely driven by strong contributions from key sectors such as textiles, rice, and other major agricultural products.
As a result, policymakers are optimistic about surpassing the $33 billion export target by June, despite facing various economic challenges. The surge in exports provides a hopeful outlook for the economy, signaling resilience even amidst global economic headwinds.
However, the country’s import bill has also risen by 6.3% during the same period, totaling $42.6 billion. This increase has been primarily fueled by higher demand for machinery, fuel, and raw materials, further straining Pakistan’s external economic position.
Consequently, the trade deficit has widened by 4.5%, reaching $17.9 billion. This reflects the ongoing difficulty in balancing foreign exchange flows and highlights the persistent challenge of managing imports and exports in a fluctuating global market.
In March 2025, exports continued to show positive growth, rising 1.95% compared to the previous year, amounting to $2.617 billion. During the same period, imports experienced a slight decline, falling by 2.45% to $4.736 billion.
The trade deficit for the month narrowed by 7.4%, offering a glimmer of hope after consecutive months of widening deficits. On a month-over-month basis, exports increased by 5.1% compared to February, while imports decreased by 1.1%, as reported by the Pakistan Bureau of Statistics (PBS).
The services sector showed mixed results in the first eight months of FY2024-25, with services exports growing by 6.03% to $5.46 billion. However, imports of services surged by 12% to $7.71 billion, leading to a 29.85% increase in the services trade deficit, which reached $2.25 billion.
Despite this, the external account position has remained relatively stable, bolstered by rising exports and a substantial increase in remittances.
Workers’ remittances have risen sharply by 32.5%, totaling $24 billion in the first eight months of FY25, compared to $18.1 billion in the previous year. This has provided crucial support to Pakistan’s foreign exchange reserves and helped offset some of the economic challenges posed by the widening trade deficit.
On the overall balance, Pakistan’s current account recorded a surplus of $691 million in July-February FY25, reversing the $1.73 billion deficit seen during the same period last year.
However, the current account swung to a modest deficit of $12 million in February 2025, compared to a surplus of $71 million in February 2024. Despite these fluctuations, the country’s economic outlook remains cautiously optimistic, driven by the steady growth in exports and remittances.
