Pakistan’s trade deficit rises to $3.95bn in July
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ISLAMABAD: Pakistan recorded a wider trade deficit of $3.95 billion in July as a sharp increase in imports outweighed growth in exports, according to official trade figures released on Thursday.
Exports continued to show positive momentum, increasing by 9.5% compared with the same month last year. However, imports grew at a significantly faster pace, pushing the country’s import bill to nearly $6.9 billion, while exports remained below $3 billion.
The rise in imports was largely driven by higher demand for industrial machinery, petroleum products, raw materials and other essential goods, reflecting increased economic activity. Despite the improvement in exports, the faster expansion in imports widened the country’s trade gap.
Economic analysts said the growing deficit highlights the need to accelerate export growth and reduce reliance on imported goods. They noted that expanding value-added exports and improving industrial productivity would be essential for strengthening Pakistan’s external sector.
The July trade data marks the beginning of the new fiscal year and will be closely monitored by policymakers, as continued pressure on the trade balance could affect foreign exchange reserves and the current account if import growth remains stronger than exports in the months ahead.
