Islamabad: Pakistan’s trade activity witnessed a notable expansion in December 2024 as imports surged to $5.3 billion, marking the highest monthly figure in two years. This increase reflects a 14% rise compared to the same month last year, according to data released by the Pakistan Bureau of Statistics (PBS).
The trade deficit widened by 35% year-on-year in December, reaching $2.4 billion. Despite the rise in imports, exports remained stable at $2.8 billion, showing a modest increase of $8 million compared to December 2023. On a month-on-month basis, the trade deficit increased by 47%.
The significant uptick in imports is attributed to the relaxation of import restrictions that had been in place for nearly three years. These restrictions were initially imposed to manage external sector challenges and conserve foreign exchange reserves.
For the first half of the fiscal year (July-December), imports totaled $27.7 billion, reflecting a 6% growth compared to the same period last year. Exports during this period amounted to $16.6 billion, showing a 10.5% increase. Consequently, the trade deficit for the six-month period stood at $11.2 billion.
Prime Minister Shehbaz Sharif recently launched the National Economic Transformation Plan, which aims to boost exports, particularly in the information technology sector. The plan sets ambitious targets, including raising IT exports by $5 billion by 2029 and achieving overall exports of $60 billion within five years.
The plan also envisions significant advancements in technology and education, such as producing 75,000 IT graduates annually, increasing broadband subscriptions to 135 million, and creating over 250 higher education institutions.
While the surge in imports signals increased economic activity, challenges remain in managing the trade deficit and foreign exchange reserves. Achieving the goals outlined in the National Economic Transformation Plan will require consistent policy measures and robust investment in key sectors.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
