Pak exports jump 13.5pc in Sept, extending winning streak

ISLAMABAD: Pakistan’s export of goods surged for the 13th consecutive month in September 2024, rising by 13.5 percent to $2.805 billion, official data showed on Wednesday. This steady growth is seen as a positive sign for the country’s external financial position, particularly its current account deficit (CAD), which has long posed a challenge for Pakistan’s economy.

Analysts view the continuous rise in overseas sales as a potential buffer against external financing pressures. The improvement in exports could help ease concerns over the CAD, a key indicator of economic stability.

According to the latest data from the Pakistan Bureau of Statistics (PBS), year-on-year exports have been rising since September 2023. The lowest growth was recorded at 1.67 percent in September 2023, while the highest was 29.27 percent in May 2024.

Imports for September 2024 also rose by 16.08 percent to $4.585 billion. Notably, since February 2024, imports have been increasing, with the lowest rise at 14.96 percent in May and the highest jump at 63.2 percent in April. Prior to this, from July 2022 to January 2024, imports had been on a steady decline as the government implemented measures to reduce the trade deficit, stabilize the rupee and address the CAD.

Despite the boost in exports, the trade deficit widened by 22.35 percent year-on-year, reaching $1.78 billion, compared to $1.479 billion in September 2023.

Compared to August 2024, both exports and imports experienced marginal increases. Exports rose by 1.56 percent from $2.76 billion in August to $2.805 billion in September, while imports increased by 1.7 percent from $4.51 billion to $4.585 billion.

For the July-September 2024/25 period, cumulative exports climbed by 14.11 percent to $7.875 billion, while imports rose by 9.86 percent to $13.31 billion. This resulted in a trade deficit of $5.435 billion for the first quarter of FY25, up 4.24 percent from $5.214 billion during the same period last fiscal year.

The PBS also released data on trade in services for July-August 2024-25, showing a services trade deficit. Pakistan imported $1.724 billion worth of services, while exporting $1.252 billion, resulting in a deficit of $471.7 million. In the same period last year, the deficit stood at $481 million.

In August 2024 alone, services exports totaled $619.7 million, while imports amounted to $901 million, creating a deficit of $281 million. This marked a 2.1 percent decline in exports and a 9.4 percent rise in imports compared to July 2024, when the deficit was $190.5 million.

On a year-on-year basis, services exports in August 2024 fell by 6.5 percent, while imports increased by 2.03 percent. In August 2023, exports stood at $663 million and imports at $883 million, resulting in a $220 million deficit.