ISLAMABAD: Pakistan’s merchandise exports slowed for the second consecutive month in December due to a steep fall in international demand, according to data released by the Pakistan Bureau of Statistics on Wednesday.

The growth momentum picked pace in July owing to improved orders and stability in the exchange rate. Demand from North America and European countries is anticipated to pick up pace from January onwards.

The exports grew 11.83pc in July, followed by 16pc in August, 13.52pc in September, 10.64pc in October, 8.98pc in November and 0.67pc in December.

Pakistan Textile Exporters Association Patron-in-Chief Khurram Mukhtar told Dawn that historically, exports slowed down in December due to holidays. He mentioned that US President-elect Donald Trump has announced possible tariff increases on Chinese and South American products. Mr Mukhtar added that US retailers and buyers are visiting Pakistan to place orders, with many orders already in the pipeline.

Trade deficit soars 35pc to $2.44bn

The exports reached $2.84bn in December against $2.82bn in the corresponding month last year. On a month-on-month basis, exports slightly increased 0.28pc.

In the first half of FY25, export proceeds stood at $16.56bn in July-December FY25 as against $14.98bn over the corresponding months of last year, showing an increase of 10.52pc.

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

Mr Mukhtar mentioned that the Federal Board of Revenue has cleared the sales tax refunds for exporters, but payments under other categories are still pending. He emphasised that the government needs to address the issues of energy and capital to help exporters meet international buyers’ export orders.

According to the exporters, high input costs squeeze their margins and limit their capacity to reinvest and expand operations. The Ministry of Commerce has already submitted a range of proposals to the prime minister to facilitate exports from the country.

In FY24, Pakistan’s merchandise exports rose 10.54pc to $30.64bn from $27.72bn in the preceding year.

Trade deficit

According to the PBS data, imports grew 6.11pc to $27.73bn in July-December FY25 from $26.14bn over the last year. Imports surged to $5.28bn in December from $4.50bn last year. Month-on-month, imports increased 17.44pc.

The IMF revised its import forecast downward by $3.3bn from $60.5bn to $57.2bn for FY25, converging with the government’s projection of $57.3bn. In FY24, imports fell 0.84pc to $54.73bn compared to $55.19bn in FY23.

The trade deficit in July-December FY25 increased by 0.18pc to $11.17bn from $11.15bn over the last year. In December, the deficit increased by 34.80pc to $2.44bn from $1.82bn last year. The trade gap contracted to $24.08bn in FY24 from $27.47bn in the preceding year.

Published in Dawn, January 2nd, 2025

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

From hard to harder

From hard to harder

Instead of ‘hard state’ turning even harder, citizens deserve a state that goes soft on them in delivering democratic and development aspirations.

Editorial

Canal unrest
Updated 03 Apr, 2025

Canal unrest

With rising water scarcity in Indus system, it is crucial to move towards a consensus-driven policymaking process.
Iran-US tension
03 Apr, 2025

Iran-US tension

THE Trump administration’s threats aimed at Iran do not bode well for global peace, and unless Washington changes...
Flights to history
03 Apr, 2025

Flights to history

MOHENJODARO could have been the forgotten gold we desperately need. Instead, this 5,000-year-old well of antiquity ...
Eid amidst crises
Updated 31 Mar, 2025

Eid amidst crises

Until the Muslim world takes practical steps to end these atrocities, these besieged populations will see no joy.
Women’s rights
Updated 01 Apr, 2025

Women’s rights

Such judgements, and others directly impacting women’s rights should be given more airtime in media.
Not helping
Updated 02 Apr, 2025

Not helping

If it's committed to peace in Balochistan, the state must draw a line between militancy and legitimate protest.