ISLAMABAD: Merchandise exports decreased by 10 per cent in May, continuing the negative trend for the current fiscal year, according to the Pakistan Bureau of Statistics.
The growth in export proceeds began to decelerate in October, and the pace progressively slowed in the months that followed, eventually shrinking by 5.57pc in February, 8.93pc in April, and 10.07pc in May.
Export growth returned in March, with a modest 3.08pc increase, but fell back to negative growth in April and the following month.
The slowdown in export proceeds may worry policymakers in the federal government.
However, there is no panic in the Ministry of Commerce over the steady decline in export proceeds.
Trade gap widens 10.63pc to $24bn in 11MFY25
The exports grew 11.83pc in July, followed by 16pc in August, 13.52pc in September, 10.64pc in October, 8.98pc in November, 0.67pc in December and 4.59pc in January.
Exports reached $2.55bn in May against $2.84bn in the corresponding month last year. On a month-on-month basis, exports increased 17.43pc.
In the 11 months of FY25, export proceeds rose 4.72pc to $29.445bn against $28.117bn in the corresponding period last year.
Global buyers have redirected clothing sourcing from Bangladesh and China, placing orders with Pakistan over the past few months. It allows exporters to capitalise on the opportunity and capture the market.
Trade deficit
According to the PBS data, imports grew 7.30pc to $53.450bn in July-May FY25 from $49.815bn over the last year. Imports rose 5.23pc to $5.172bn in May from $4.915bn. Month-on-month, imports decreased 7.58pc.
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 decreased 0.84pc to $54.73bn compared to $55.19bn in FY23.
The trade deficit in July-May FY25 widened by 10.63pc to $24.005bn from $21.698bn over the last year. In May, the deficit increased by 26.16pc to $2.619bn from $2.076bn last year. The trade gap contracted to $24.08bn in FY24 from $27.47bn in the preceding year.
Published in Dawn, June 5th, 2025
