Pakistan’s trade deficit widens by 20.4% YoY to $1.8 billion in Sept

Pakistan's trade deficit rose by 20.4% to $1.8 billion in September compared to the same month last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.

It also widened 1.9% compared to August's figures.

The country's exports reached $2.80bn in September, marking a 13.5% increase from the same month last year and a 1.6% rise from August.

At the same time, the country's imports reached $4.58 billion, representing a 16.1% increase from September 2023 and a 1.7% rise from August.

Additionally, on a month-on-month basis, the trade deficit reached $1.78 bn compared to $1.75 bn in August 2024. Exports saw a 1.6% increase, totaling $2.81 bn, compared to $2.76 bn in the previous month. Meanwhile, imports surged to $4.59 bn from $4.51 bn last month.

Cumulatively, the deficit for the first quarter of fiscal year 2024-25 (FY25) was recorded at $5.4bn, a 4.2% increase compared to the same period last year. This was primarily attributed to a 10% increase in imports.

The increase in the trade deficit is largely attributed to the base effect. In September 2023, imports of food items — particularly palm oil — as well as machinery and chemicals, including plastics, were lower than this September's imports.

Going forward, the trade deficit may narrow, given Pakistan's ongoing bilateral trade negotiations. Last month, Federal Minister for Commerce Jam Kamal Khan said that Pakistan's transshipment policy is being updated to enhance cross-border trade and create business opportunities for the local community. The goal is to position Pakistan as a regional business hub for Central Asia, South Asia, and the Middle East.

Additionally, Turkmenistan has also expressed interest in gaining access to the strategically located Gwadar Port to facilitate trade expansion.