Pakistan Exports Surge 14.11% in Q1 FY25

In recent months, Pakistan has witnessed a significant boost in its merchandise exports, marking a notable increase of 14.11 percent in the first quarter of the current fiscal year. This rise brought the total exports to $7.87 billion, up from $6.90 billion during the same period last year. The data, released by the Pakistan Bureau of Statistics, highlights a positive trend that is largely attributed to improved international orders and a stable exchange rate.

The growth in exports was particularly strong in July, where an increase of 11.83 percent was recorded. This upward trajectory continued with exports growing by 16 percent in August and 13.52 percent in September. Specifically, September saw exports reach $2.81 billion, compared to $2.47 billion in the same month last year. However, on a month-on-month basis, the increase was modest at just 1.56 percent.

One of the key factors contributing to this growth is the shift in global sourcing patterns. Buyers from around the world have started redirecting their clothing orders from traditional suppliers like Bangladesh and China to Pakistan. This shift presents a golden opportunity for Pakistani exporters to capture a larger share of the market.

Khurram Mukhtar, the Patron-in-Chief of the Pakistan Textile Exporters Association, expressed optimism about the potential for even greater growth. He stated that exports could have surged by as much as 25 percent if challenges related to liquidity and taxation had been addressed effectively.

In terms of refunds, the Federal Board of Revenue (FBR) disbursed Rs146 billion to taxpayers in the first quarter of FY25, which is an increase from Rs129 billion in the same quarter last year, reflecting a 13.17 percent rise. However, it is worth noting that refund payments saw a significant drop in September, falling to Rs15 billion from Rs37 billion in the same month last year.

On the import side, Pakistan also experienced a rise, with imports growing by 9.86 percent to $13.31 billion in July-September FY25, compared to $12.11 billion in the previous year. September alone saw imports increase by 16.08 percent, reaching $4.58 billion from $3.95 billion in the same month last year. This increase in imports has contributed to a widening trade deficit, which rose by 4.24 percent to $5.44 billion in the first quarter of FY25, compared to $5.22 billion last year.

While the rise in exports is a positive development for Pakistan's economy, the challenges of liquidity and taxation remain critical issues that need to be addressed. The government and relevant authorities must work collaboratively to create a more conducive environment for exporters. By doing so, Pakistan can not only enhance its export performance but also strengthen its position in the global market, paving the way for sustainable economic growth in the future.