Pakistan’s exports surged by 10% in the first seven months of the current fiscal year, reaching $19.55 billion, compared to $17.77 billion during the same period last year, a private newspaper reported, citing Pakistan Bureau of Statistics (PBS).

This growth reflects a positive economic trajectory and offers some relief in managing external accounts.

Meanwhile, imports climbed 6.95% to $33 billion, up from $30.9 billion, according to data released by the PBS on Monday. Despite the rise in exports, the trade deficit widened slightly by 2.84%, reaching $13.49 billion, as imports outpaced export gains.

This trend signals a positive development for the nation’s external financial position, particularly concerning its current account deficit (CAD), which has long been a source of economic vulnerability.

Since August 2024, Pakistan’s CAD is in surplus due to higher remittances and improved trade balance. In December 2024, it was surplus $582 million against $279 million in December 2023.

Exports in January 2025 stood at $2.92 billion, reflecting a modest year-on-year increase of 4.59%, while imports surged 10% to $5.233 billion from $4.756 billion in January 2024. As a result, the monthly trade deficit rose 17.78% to $2.313 billion from $1.96 billion.

On a month-over-month basis, exports inched up from $2.91 billion in December 2024, showing little momentum. Imports, however, declined by 2.3% from $5.36 billion in the previous month.

The rising trade gap presents a challenge for policymakers already contending with external account pressures and economic vulnerabilities.

Experts suggest that a strategic approach is needed to improve export competitiveness, including product diversification and market expansion.

“Without targeted reforms to enhance export performance, Pakistan’s trade imbalance will continue to strain foreign exchange reserves and economic stability,” said an industry analyst.

With global economic uncertainty and rising import costs, policymakers must strike a balance between sustaining essential imports and curbing the deficit to protect the country’s financial stability.