In the first month of the new fiscal year (FY25), Pakistan’s trade deficit widened by nearly 20 percent year-on-year. Data from the Pakistan Bureau of Statistics (PBS) reveals that the trade deficit reached $1.948 billion in July 2024, marking a 19.7 percent increase from the $1.627 billion recorded in July 2023.

However, on a month-on-month basis, the trade deficit decreased by 19 percent in July 2024 compared to the $2.406 billion deficit in June 2024. According to JS Global Capital, this is the lowest trade deficit recorded in the past five months.

Exports in July 2024 increased by 11.8 percent year-on-year, totaling $2.308 billion, although they fell by 9.8 percent compared to the previous month. Imports also rose by 15.3 percent year-on-year, but decreased by 14.3 percent month-on-month, amounting to $4.256 billion.