By Staff Reporter
ISLAMABAD: The trade deficit shrank in May from the previous month as exports surged, though it widened compared to the same month a year earlier, data from the Pakistan Bureau of Statistics showed on Wednesday.
The deficit narrowed to $2.601 billion in May from $3.422 billion in April, driven by a 22.91% month-on-month jump in exports to $2.672 billion, while imports dropped 5.77% to $5.273 billion. Still, the shortfall grew from $2.076 billion in May 2024, with exports down 5.88% year-on-year and imports up 7.28%.
For the first 11 months of fiscal year 2024-25, spanning July to May, the cumulative trade deficit reached $23.986 billion. Exports rose 5.15% to $29.564 billion from $28.117 billion a year earlier, while imports climbed 7.50% to $53.55 billion from $49.815 billion, signaling persistent pressure on the country’s external accounts.
The monthly export gain in May marked a sharp rebound from April’s implied $2.174 billion, though it fell short of the $2.839 billion recorded in May 2024. Imports, meanwhile, eased from April’s $5.596 billion but topped the $4.915 billion seen a year ago.
Major export items in May included knitwear at 123.121 billion rupees, readymade garments at 105.420 billion rupees, and bed wear at 75.937 billion rupees. Other key contributors were rice and related products at 50.707 billion rupees, cotton cloth at 38.147 billion rupees, towels at 25.939 billion rupees, made-up articles (excluding towels and bed wear) at 19.895 billion rupees, basmati rice at 16.682 billion rupees, fish and fish preparations at 15.908 billion rupees, and cotton yarn at 11.976 billion rupees.
On the import side, petroleum products led with 140.651 billion rupees, followed by petroleum crude at 124.107 billion rupees and electrical machinery and apparatus at 111.559 billion rupees. Palm oil accounted for 92.020 billion rupees, liquefied natural gas (LNG) 82.753 billion rupees, iron and steel 62.090 billion rupees, plastic materials 53.722 billion rupees, iron and steel scrap 42.722 billion rupees, motor cars (CKD/SKD) 37.539 billion rupees, and raw cotton 35.830 billion rupees.
The trade figures show the challenges Pakistan faces in curbing its deficit, with imports, particularly energy-related goods, continuing to outpace export growth. The month-on-month improvement in May offers a glimmer of relief, but the year-on-year widening underscores the difficulty of sustaining trade momentum amid global and domestic economic headwinds.
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