Pakistan Trade Deficit Grows by 35 Percent in December 2024 as Imports Hit 27 Month High!

Pakistan’s trade deficit experienced a significant surge in December 2024, widening by 35% compared to the same month last year. According to the Pakistan Bureau of Statistics (PBS), the deficit reached $2.444 billion, a sharp increase from $1.813 billion in December 2023. This jump highlights growing concerns about the country’s trade balance as imports hit their highest level in 27 months.

The export figures for December 2024 showed only a slight improvement, registering a 1% growth. Exports stood at $2.841 billion, marginally up from $2.882 billion recorded during the same month last year. This minimal growth in exports reflects ongoing challenges in enhancing the country’s international trade performance.

On the other hand, imports surged significantly by 14%, reaching $5.285 billion in December 2024 compared to $4.635 billion in December 2023. The sharp increase in imports has been a major contributor to the widening trade deficit and marks the highest monthly import figure in over two years.

Month-on-month comparisons show an even steeper rise in the trade deficit. In November 2024, the deficit was recorded at $1.667 billion, meaning the December figure represents a 47% month-on-month increase. Imports in December also jumped by 17% from $4.500 billion in November 2024, while exports showed only a slight increase from $2.833 billion to $2.841 billion over the same period.

For the first six months of the fiscal year 2025 (July to December 2024), the trade deficit remained relatively stable at $11.172 billion, compared to $11.152 billion during the same period in the previous fiscal year. Exports during these six months rose by 11%, reaching $16.561 billion compared to $14.985 billion in the same period of FY24. However, this growth in exports was overshadowed by a 6% increase in imports, which stood at $27.733 billion, up from $26.137 billion in FY24.

This growing trade deficit underscores the need for robust policies to curb excessive imports and boost export sectors. With imports outpacing exports at such a significant rate, addressing the trade imbalance remains a critical challenge for Pakistan’s economic stability.

Also Read: Significant Progress in Pakistan-Saudi Trade Relations!