Synopsis
In the first half of the fiscal year from July 2024 to June 2025, Pakistan's trade deficit with nine neighboring countries increased by 43.22% according to the SBP. Imports soared, while exports to some countries saw a notable rise, highlighting the complexities of Pakistan's economic situation.Key Takeaways
- Trade deficit expanded by 43.22%.
- Imports increased by 29.97%.
- Exports to Afghanistan, Bangladesh, and Sri Lanka rose.
- Economic liberalisation is ongoing in Pakistan.
- Challenges include population growth and foreign debt.
Islamabad, Jan 19 (NationPress) Pakistan's trade deficit with nine neighbouring countries has surged by 43.22 percent during the initial half of the current fiscal year, spanning from July 2024 to June 2025, as reported by the State Bank of Pakistan (SBP).
The statistics released on the SBP website on Sunday indicate that this growing trade deficit is primarily due to imports from China, India, and Bangladesh, according to Xinhua news agency.
Conversely, Pakistan's exports to Afghanistan, Bangladesh, and Sri Lanka witnessed a significant rise, slightly compensating for the overall decline in exports.
The value of Pakistan's exports to nine nations, including China, Afghanistan, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives, increased by 7.85 percent to 2.40 billion dollars during the July-December period compared to 2.23 billion dollars during the same timeframe last year.
The data further revealed that Pakistan's imports from these regional countries soared by 29.97 percent, reaching 7.73 billion dollars in the first half of the current fiscal year, up from 5.95 billion dollars in the corresponding period last year.
Pakistan is classified as a developing economy. It stands as the 24th-largest globally based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million as of 2023, Pakistan ranks 161st in per capita income based on nominal GDP and 138th by GDP (PPP) according to the International Monetary Fund (IMF).
Initially, Pakistan's economy was heavily reliant on private industries. The nationalisation of a significant portion of this sector, including financial services, manufacturing, and transportation, began in the early 1970s, with a return to privatisation occurring in the 1990s.
Currently, Pakistan is undergoing economic liberalisation, which includes the privatisation of all government corporations, aimed at attracting foreign investment and reducing budget deficits. However, the country continues to face challenges such as rapid population growth, widespread illiteracy, political instability, hostile neighbours, and substantial foreign debt.
