Goods exports rise by 7.7% to $24.7bn in nine months

ISLAMABAD: Pakistan’s exports climbed 7.7 percent to $24.7 billion in the first nine months of the fiscal year 2024-25, bolstered by gains in textiles, rice and other key agricultural products.

The policymakers expect total exports to surpass $33 billion by June, aiming to sustain the momentum despite economic headwinds.

Imports over the same period rose 6.3 percent to $42.6 billion, driven by increased demand for machinery, fuel, and raw materials, further straining the country’s external position. As a result, the trade deficit widened 4.5 percent to $17.9 billion, underscoring ongoing challenges in balancing foreign exchange flows.

In March 2025, exports rose 1.95 percent year-on-year to $2.617 billion, while imports dipped 2.45 percent to $4.736 billion. The trade deficit for the month shrank 7.4 percent to $2.12 billion, offering some relief after consecutive months of rising deficits.

On a month-over-month basis, exports increased 5.1 percent from February, while imports fell 1.1 percent, the Pakistan Bureau of Statistics (PBS) reported Thursday.

The services sector also saw mixed results. In the first eight months of FY2024-25, services exports grew 6.03 percent to $5.46 billion, while imports surged 12 percent to $7.71 billion. The services trade deficit widened 29.85 percent to $2.25 billion. In February 2025, services exports climbed 5 percent to $710 million, while imports spiked 32.7 percent to $1.01 billion.

Despite the widening trade gap, Pakistan’s external account position remains stable, supported by a rise in exports and a sharp increase in remittances. The current account posted a surplus of $691 million in July-February FY2025, reversing a $1.73 billion deficit from a year earlier. However, in February, the current account swung back to a $12 million deficit, compared with a $71 million surplus in February 2024.

Workers’ remittances surged 32.5 percent to $24 billion in the first eight months of FY2025, up from $18.1 billion a year earlier, providing crucial support to foreign exchange reserves.