- Exports of goods increased by 4.72%, reaching 29.44 billion dollars during fiscal year 25.
- Larger macroeconomic indicators show signs of stabilization.
- The inflation of titles bounces slightly at 3.46% in May.
Islamabad: Data published Wednesday by Pakistan Bureau Statistics (PBS) showed that the country’s trade deficit has expanded to $ 24 billion in the first 11 months of the current financial year, marking an increase of 10.6% compared to the same period last year.
This expansion is mainly attributed to a significant increase in imports, which has exceeded more modest export growth.
From July to May during the year 2024-25, exports of goods saw an increase of 4.72%, reaching 29.44 billion dollars. However, imports jumped from 7.3% to 53.45 billion dollars.
This widening difference between imports and exports continues to put pressure on the external accounts of Pakistan, which has an impact on the reserves of rupees and a dollar.
Despite these commercial imbalances, the wider macroeconomic indicators of Pakistan have shown signs of stabilization.
The inflation of the headlines, after a historic hollow of 0.30% in April 2025, rebounded slightly at 3.46% in May. Above all, the country’s current account recorded a surplus of $ 1.88 billion in July-Advril Fy5, marking a significant reversal of a deficit of $ 1.34 billion during the corresponding period last year.
This improvement in the current account was largely pulled by a substantial increase of 30.9% of workers’ funds, which amounted to $ 31.2 billion.
While exports of goods were faced with a setback in May – down 10.1% in annual sliding at 2.55 billion dollars – they have always experienced a solid monthly rebound, increasing by 17.4% compared to April. Imports in May increased by 5.2% to 5.17 billion dollars compared to the same month last year, but dropped 7.6% per month, offering short -term rescue on the outside front.
Despite the widening gap, some positive indicators have offered relief. The country’s average monthly export volume amounts to $ 2.67 billion – Place Pakistan on the right track to potentially exceed $ 32 billion by the end of the 2024-25 fiscal year in June.
Economists say that high interest rates have hampered the competitiveness of exports, companies confronted with close credit conditions, banks prioritize investments in state securities on private sector loans.
Meanwhile, the service trade has shown a smaller but notable deficit of $ 2.5 billion during July-Advril Fy5, slightly above 2.4 billion dollars from last year.
Service imports increased by 7.9% to $ 9.43 billion, while exports increased 9.3% to $ 6.93 billion, stimulated by transport, IT and business services.
The information and communication technology sector (ICT) remained a light point, exports climbing 21.1% to 3.14 billion dollars – representing almost half of all exports of services.
Government efforts to support the digital economy through independent incentives, vocational training and international certifications have started to bear fruit, according to analysts.
