ISLAMABAD: Pakistan’s merchandise exports rose 14.11 per cent to $7.87 billion in the first quarter of the current fiscal year from $6.90bn in the same period last year, according to data released by the Pakistan Bureau of Statistics on Wednesday.

The growth momentum picked pace in July owing to improved orders from the international community and stability in the exchange rate. The exports grew 11.83pc in July, followed by 16pc in August and 13.52pc in September.

The exports reached $2.81bn in September against $2.47bn in the corresponding month last year. On a month-on-month basis, exports rose a paltry 1.56pc.

Global buyers have redirected clothing sourcing from Bangladesh and China and placed orders with Pakistan. It allows Pakistani exporters to capitalise on and capture the market.

Trade gap widens to $5.44bn

Pakistan Textile Exporters Association Patron-in-Chief Khurram Mukhtar said exports could have been surged by 25pc if issues related to liquidity and taxation had been resolved.

The FBR paid Rs146bn in refunds to taxpayers in the first quarter of FY25, up from Rs129bn in the same quarter last year, representing a 13.17pc increase. Refund payments plunged to Rs15bn in September from Rs37bn in the same month last year.

Trade deficit

According to the PBS data, imports grew 9.86pc to $13.31bn in July-September FY25 from $12.11bn over the last year. The imports increased 16.08pc in September to $4.58bn from $3.95bn in the same month last year. Month-on-month, imports increased 16.08pc. In FY24, imports fell by 0.84pc to $54.73bn compared to $55.19bn in FY23.

The trade deficit in July-September FY25 increased by 4.24pc to $5.44bn from $5.22bn over the last year. In September, the deficit increased by 20.35pc to $1.78bn from $1.48bn last year. The trade gap contracted to $24.08bn in FY24 from $27.47bn in the preceding year.

Published in Dawn, October 3rd, 2024