ISLAMABAD   -   Pakistan’s trade deficit has widened by 4.24 percent in the first quarter (July to September) of the current fiscal year as the country’s exports and imports both have increased.

The country’s trade deficit has increased by 4.24 percent during the July-September period of this fiscal year. The trade imbalance, gap between exports and imports, was recorded at $5.4 billion as against $5.2 billion during the same period of last fiscal year. Pakistan’s exports have enhanced by 14.11 percent to $7.9 billion during the first quarter of the ongoing financial year as compared to $6.9 billion in the same months of the last year. Meanwhile, imports increased by 9.86 percent to $13.3 billion during the July to September period of the year 2024-25 as compared with $12.11 billion in the same month of the last fiscal year.

The data further showed that the country’s trade deficit has widened by 1.89 percent on a month-on-month basis to $1.78 billion in September this year as against $1.75 billion in August. Exports have recorded 1.56 percent increase to $2.8 billion in September 2024 when compared to $2.76 billion in August 2024. On the other hand, the imports have recorded a 1.69 percent increase to $4.59 billion in September 2024.

The trade deficit has increased by 20.35 percent on a year-on-year basis to $1.78 billion in September 2024 compared to $1.48 billion in September 2023. Imports have increased by 16.08 percent on a YoY basis and remained $4.59 billion in September 2024 compared to $3.95 billion in September 2023. Exports have enhanced by 13.52 percent on a YoY basis and remained $2.81 billion in September 2024 compared to $2.47 billion in September 2023. The ministry of finance had noted that it is expected that exports and imports will observe an increase in momentum. In September 2024, the exports are likely to remain within the range of $ 2.5-3.0 billion, imports $4.5-5.0 billion and workers’ remittances $ 2.7-3.2 billion.

The external account position has strengthened due to improved exports and remittances nevertheless imports also increased. During Jul-Aug FY2025, the current account registered a deficit of $ 0.2 billion compared to $ 0.9 billion last year however; it recorded a surplus of $ 75 million in August 2024. During Jul-Aug FY2025, goods exports increased by 7.2 percent, reaching $ 4.9billion, while imports stood at $ 9.5 billion, compared to $ 8.4 billion last year leading to a trade deficit of $ 4.7 billion. As per Pakistan Bureau of Statistics, the export commodities that registered notable positive growth include rice (98.6%), fruits & vegetables (26.7%), knitwear (7.2%), bedwear (7.6%), readymade garments (17.9%), and chemicals & pharma products (9.7%). The major imports which registered a rise include petroleum crude (107%), liquefied natural gas (10.7%), fertilizer (622%), machinery (15%), and iron & steel scrap (4.1%). The service exports grew to $1.2 billion (0.2%) and imports declined to $ 1.7 billion (0.5%), resulting in a trade deficit of $ 0.47 billion compared to $ 0.48 billion last year. IT exports grew by 30.2% to $0.6 billion against $ 0.4 billion last year.