TLDR:
• Pakistan exports surge over ten percent
• Imports rise modestly, showing control
• Trade deficit narrows significantly
ISLAMABAD (The Thursday Times) — Pakistan’s external trade data for the first half of 2024 reflects a positive shift in the economy. Exports have surged by over ten percent, showcasing robust growth, while imports remain under control. The trade deficit has narrowed significantly, indicating improved economic management and stabilisation. The Pakistan Bureau of Statistics (PBS) has unveiled figures that highlight an encouraging trajectory for the nation’s trade dynamics.
Exports rise by over ten percent
Pakistan’s exports for the July to December 2024 period crossed 4.6 trillion rupees, reflecting a year-on-year growth of over seven percent in rupee terms. In dollar terms, exports exceeded 16.5 billion, marking an impressive increase of over ten percent compared to the same period in 2023. This surge demonstrates Pakistan’s strengthening foothold in global markets, particularly in textiles and rice.
The textile sector, including knitwear, readymade garments, and bed linens, continued to dominate, benefiting from sustained international demand. Rice exports, both basmati and other varieties, also contributed significantly, driven by heightened demand in key markets such as the Middle East and Africa. This growth underlines the strategic importance of these sectors in maintaining a healthy trade balance.
Controlled growth in imports
Imports during the same period amounted to over 7.7 trillion rupees, with a modest growth rate compared to the previous fiscal year. In dollar terms, imports stood at around 27.7 billion, reflecting a slight increase of under two percent. This controlled rise indicates effective measures to limit unnecessary imports while ensuring the availability of essential goods.
Energy imports remained relatively stable due to lower global oil prices and improved domestic strategies. While food imports persisted to meet local demands, a slight dip in machinery imports indicated a cautious approach to industrial expansion amidst global uncertainties.
Trade deficit narrows substantially
The trade deficit for the July to December 2024 period dropped to approximately 3.1 trillion rupees, a marked improvement compared to the same period in 2023. In dollar terms, the deficit narrowed to just over 11 billion, representing a significant reduction of around ten percent. This narrowing gap highlights Pakistan’s efforts to align export growth with controlled import expansion, reflecting sound economic policies.
Efforts to diversify the export portfolio are beginning to pay off. New sectors, including processed foods and pharmaceuticals, are making contributions, albeit modest ones, alongside traditional export mainstays. The improvement in the trade deficit offers hope for greater economic stability and resilience moving forward.
Policies driving the shift
The government’s proactive policies, including export subsidies, streamlined trade agreements, and rationalisation of imports, have played a pivotal role in this positive trend. The depreciation of the Pakistani rupee, while challenging domestically, provided a competitive edge for exporters in global markets.
Continued investment in infrastructure, innovation, and logistics will be essential for maintaining this upward trajectory. Pakistan’s trade landscape, though improved, still requires structural reforms to ensure long-term sustainability.