Exports Fall: May Data – Business News
- ISLAMABAD — Pakistan's merchandise exports experienced a 10% decrease in May, according to the Pakistan Bureau of Statistics.
- While exports showed growth earlier in the fiscal year, the pace slowed from October onward.
- Despite the recent downturn, total export proceeds for the first 11 months of FY25 rose 4.72% to $29.445 billion, compared to $28.117 billion during the same period last...
Pakistan’s merchandise exports fell 10% in May, signaling potential economic headwinds for the fiscal year. This decline, highlighted in the latest data, contributes to a widening trade deficit, a critical point for the nation’s financial health. While total export proceeds show a rise for the first 11 months, the downturn in May, coupled with a 7.30% increase in imports, presents a complex situation.News Directory 3 keeps you up-to-date on these crucial economic turns. The deficit widened by 10.63% during the first eleven months of the Financial Year 2025. With the government facing the challenge of stabilizing the economy, import management and export strategies will be crucial. Discover what’s next for the nation’s trade balance.
Pakistan Trade Deficit Widens Despite Export Growth
Updated June 5, 2025
ISLAMABAD — Pakistan’s merchandise exports experienced a 10% decrease in May, according to the Pakistan Bureau of Statistics. This decline contributes to a concerning trend for the current fiscal year,impacting the nation’s overall trade balance.
While exports showed growth earlier in the fiscal year, the pace slowed from October onward. February saw a 5.57% drop, followed by 8.93% in April, and culminating in May’s significant 10.07% decrease. A modest 3.08% increase in March proved to be an exception, with negative growth resuming in April.
Despite the recent downturn, total export proceeds for the first 11 months of FY25 rose 4.72% to $29.445 billion, compared to $28.117 billion during the same period last year. May exports reached $2.55 billion, up 17.43% from april but down from $2.84 billion in may 2024. Global buyers are increasingly sourcing clothing from Pakistan, providing opportunities for exporters.
However, import figures paint a less optimistic picture. Imports grew 7.30% to $53.450 billion in July-May FY25, up from $49.815 billion the previous year. May imports increased 5.23% to $5.172 billion. The International Monetary Fund (IMF) has revised its import forecast downward to $57.2 billion for FY25, aligning with government projections.
The resulting trade deficit for July-May FY25 widened by 10.63% to $24.005 billion, compared to $21.698 billion last year. In May alone, the deficit increased by 26.16% to $2.619 billion.
What’s next
The government faces the challenge of addressing the widening trade deficit. policymakers will likely focus on strategies to boost exports and manage import levels to stabilize the economy.