Pakistan's trade deficit hits $2.4 billion in December

Pakistan recorded a trade deficit of $2.4 billion in December, the highest since April last year.

Imports surged to $5.3 billion, marking a 14% increase, the highest level since September 2022. Exports for the month amounted to $2.8 billion, reflecting a 1% increase from the same month last year.

Muhammad Sohail, CEO Topline Securities, attributed higher imports to improving economic activity after fall in interest rates.

Lower interest rates and improvement in some segments of industrial sector also raised demand.

For the first half of the fiscal year 2025, the trade deficit rose by 0.2% to $11.2 billion.

Prime Minister Shehbaz Sharif on Wednesday lauded the economic progress achieved in the last nine months of his government’s tenure and emphasized export-led growth for the future.

The government’s new five-year economic transformation plan envisages a 6% GDP growth and $60 billion exports by 2028.

It may be mentioned here the current account balance posted a surplus of $729 million in November, marking a nearly 10-year high and the second-largest surplus since July 2013, a significant turnaround from the $148 million deficit recorded in November 2023.