Pakistan’s Trade Deficit Widens Despite Export Growth in H1 FY25

Pakistan’s exports saw a 10.52% increase in the first half (July-December) of fiscal year 2024-25, reaching $16.561 billion, compared to $14.985 billion in the same period last year, according to data from the Pakistan Bureau of Statistics (PBS).

Imports also rose by 6.11%, climbing to $27.733 billion from $26.137 billion in the previous year.

Consequently, the trade deficit for the first half of FY25 slightly increased by 0.18%, reaching $11.172 billion, compared to $11.152 billion in the same period last year.

In December 2024, the trade deficit surged by 46.61% month-on-month (MoM), rising to $2.444 billion from $1.667 billion in November. On a year-on-year (YoY) basis, the December trade deficit widened by 34.80%, compared to $1.813 billion in the same month last year.

Exports in December 2024 saw a marginal YoY increase of 0.67%, rising to $2.841 billion from $2.822 billion in December 2023. On a MoM basis, exports showed a slight uptick of 0.28%, from $2.833 billion in November 2024.

Imports in December grew sharply by 14.02% YoY to $5.285 billion from $4.635 billion in December 2023. On a MoM basis, imports surged by 17.44%, rising from $4.500 billion in November 2024.

The widening trade deficit underscores ongoing challenges in managing trade balance, as imports continue to grow at a faster rate. The government may need to explore measures to reduce the trade gap in the coming months.