In July 2024, Pakistan experienced an 11.83% increase in exports, reaching $2.31 billion, according to the Pakistan Bureau of Statistics (PBS). This annual growth, however, was moderated by a significant 9.77% drop compared to June. Imports also rose by 15.30% year-on-year, amounting to $4.25 billion, but faced a 14.27% decline from the previous month. Consequently, the trade deficit expanded by 19.71%, reaching $1.95 billion.
Over the entire fiscal year 2024, Pakistan’s exports saw a commendable increase of 10.54%, totaling $30.64 billion. Imports, in contrast, experienced a marginal decrease of 0.84%, with a total of $54.73 billion. Despite the positive trend in exports, exporter associations are expressing concerns about the potential adverse effects of new tax regulations on export revenues. They fear that these new measures could undermine recent progress and negatively impact the trade balance.
This situation underscores the nuanced nature of Pakistan’s trade dynamics. While growing exports offer a promising outlook for economic development, challenges such as rising imports and evolving tax policies present risks that require careful attention to maintain the positive trajectory.