HAMZA HABIB
ISLAMABAD: Trade deficit in the first month of financial year 2025-26 swelled by 44.16 per cent on year-on-year basis, despite showing double digit growth in merchandise exports.
According to the figures released by Pakistan Bureau of Statistics (PBS),in July FY26 the merchandise exports increased by 17 per cent to $2.7 billion compared to $2.31 billion in July FY25.
However, the import bill of merchandise in July FY26 jumped by 29.25 per cent to $5.45 billion compared to $4.2 billion in the same month of previous year increasing by over $1 billion in just one month.
On month-on-month basis, exports increased by 8.9 per cent in July FY26 to $2.7 billion compared to $2.48 billion in June FY25. Whereas, imports remained $5.45 billion in July FY06 compared to $4.85 billion in June FY05 up by 16.02 per cent. It may be mentioned here that according to All Pakistan Textile Mills Association (APTMA), the textile exports have posted a growth of 33.7 per cent to $1.69 billion in July FY 2025-26 as compared to $ 1.27 billion during the corresponding month of FY 2024-25.
Despite robust growth in the export of textile products, overall growth of 17 per centin exports clearly shows that apart from textile no other exporting sector performed well in July FY26.
The increase in import bill is largely because of increase in oil prices due to escalation of political crisis in the Middle East, especially Iran-Israel war.
According to the PBS, the exports of services in FY25 increased by 9.23 per cent to $8.34 billion compared to $7.69 billion in FY24. Whereas, the import of services increased by two per cent in FY25 to $11 billion compared to $10.8 billion in the same period of FY24. Resultantly, showing a trade deficit of 15.84 per cent.
In June FY25, exports of services up by 12.91 per cent in June on YoY basis to $726.7 million compared to $643.6 million in same period of previous year. Whereas, import of services on MoM basis, declined by 24.10 per cent to $851.6 million in June FY25, compared to $1.12 billion in the same period of the previous year.
On MoM basis, export of services declined by 0.44 per cent $726 million June compared to $729 million in May. Whereas, import of services also reduced by 2.15 per cent to $851.6 million in June compared to $870.3 million in May.
