Pakistan’s Exports Surge by 14.1% in First Quarter of FY 2024, but Rising Imports Widen Trade Deficit

Pakistan’s export sector showed significant growth in the first quarter of the financial year 2024, as exports rose by 14.1% compared to the same period last year. According to data released by the Pakistan Bureau of Statistics, from July to September 2024, the country’s total exports amounted to $7.87 billion, an increase of $974 million compared to the $6.9 billion recorded in the same period of the previous year.

In September 2024 alone, exports jumped by 13.52%, reaching $2.85 billion compared to $2.47 billion in September 2023. There was also a month-on-month increase of 1.56% in exports from August to September 2024.

However, despite the encouraging export performance, the country’s trade deficit continues to pose a major challenge. Pakistan recorded a 9.86% increase in imports during the first quarter, with total imports reaching $13.31 billion. This surge in imports resulted in a trade deficit of $5.43 billion, a 4.24% increase compared to the previous year’s figure for the same period.

In September 2024, the import volume stood at $4.88 billion, contributing to a 20.35% rise in the monthly trade deficit, which widened to $1.78 billion compared to $1.47 billion in September 2023. While the export sector is making strides, the persistent rise in imports continues to strain Pakistan’s economy, exacerbating the trade deficit and presenting ongoing challenges for policymakers.