ISLAMABAD: Pakistan’s trade deficit rose to $2.44 billion in December 2024, marking a 35% year-on-year surge and the highest level since April, The News reported, citing Pakistan Bureau of Statistics (PBS).
The increase was primarily attributed to a sharp rise in imports, which hit a 27-month high.
Exports for December stood at $2.84 billion, reflecting a modest 0.67% YoY increase, while imports soared to $5.285 billion, registering a 14% YoY rise.
Month-on-month (MoM) comparisons showed a 47% spike in the trade deficit compared to November’s $1.667 billion, as imports grew by 17.4% while exports remained almost stagnant with a marginal 0.28% rise.
Exports showed little momentum, inching up from $2.833 billion in November 2024 to $2.841 billion in December. Analysts cite subdued global demand for Pakistan’s key export items, such as textiles, as a key factor limiting growth.
In contrast, imports skyrocketed, fuelled by rising demand for essential commodities and raw materials, with the December figure of $5.28 billion being the highest since September 2022.
For the first half of the fiscal year 2024-25 (July-December), the trade deficit stood at $11.17 billion, up by a marginal 0.18% YoY compared to the same period last year. Exports during this period rose by 11% to $16.56 billion, while imports increased by 6.1%, reaching $27.7 billion.
While the first-half trade figures suggest stability, December’s steep import bill threatens to unravel the tenuous balance. “The rising import trajectory is concerning, especially when paired with sluggish export growth,” warned a senior economist.
The widening trade gap poses challenges for Pakistan’s policymakers, who are grappling with multiple economic pressures.
Experts suggest targeted measures to boost exports, such as diversifying export products and exploring new markets. “Without a strategic focus on improving export competitiveness, the trade imbalance will continue to exert pressure on the economy,” said an industry analyst.
