Page 60 - CMA Journal (Mar-Apr 2026)

Author Co-Author

Abbas Raza Varayla Maria Shahab
Honorary Secretary Member, Management Committee
Al-Sadiq Institute of Islamic Al-Sadiq Institute of Islamic
Banking, Finance and Takaful Banking, Finance and Takaful

Pakistan's external sector showed a steady but notable Pakistan's trade de cit rose by 9 percent from $24.104 billion
improvement during FY2024-2025, with exports re ecting a in FY24 to hit $26.27 billion during the outgoing scal year
gradual expansion of USD 1.33 billion. The sector operates i.e. FY25, according to data issued by the Pakistan Bureau of
under stress resulting from limited export diversi cation, an Statistics. Exports during FY25 stood at $32 billion, up 4.7
unfavourable trade balance and extensive reliance on percent over exports of $30.67 billion recorded in FY24.
imported energy. The country remains import-dependent, Imports surged 6.6 percent to reach $58.38 billion in FY25
particularly in petroleum products and industrial inputs, compared to imports of $54.78 billion recorded in FY24
re ecting the inelastic nature of these imports. However, this [ProPakistani, Published Jul 1, 2025].
upward trend in exports also indicates the resilience and Pakistan's export base remains narrow and heavily
underlying potential of Pakistan's export sector.
concentrated:
In the current geopolitical tensions, vulnerabilities have
been intensi ed in Pakistan's trade architecture, especially in n Textiles and Leather (which contribute over 60 percent
the Middle East region. A key source of this exposure lies in of the exports), key products include knitwear, ready-
Pakistan's relationship with the Gulf Cooperation Council made garments, bedwear and leather products.
(GCC), where imports are largely energy-driven while n Agriculture-based exports and livestock products such
exports account for roughly 9–10% (as per Pakistan as rice, fruits (particularly citrus), seafood and meat
Chamber of Commerce). (largely dependent on crop yields, catch volumes and
livestock population).
n Low-to-mid value manufactured goods.
This limited product mix exposes Pakistan to global price
and demand uctuations. The Government of Pakistan has
been consistently encouraging exporters to diversify both
products and markets, with a particular focus on non-
traditional goods such as IT and digital services and non-
Trade Structure traditional markets. The country aims to reduce its reliance
on a narrow export base and tap new avenues of growth
Pakistan is the 5th most populous country in the world and through incentive policies and institutional support.
ranks 67th in terms of global export share. In contrast,
On the import side, the country remains deeply dependent
Pakistan ranks 51st in terms of global import share (OECD,
on a few key partners who collectively supply nearly 50% of
2026).
total imports, particularly concentrated in the GCC countries.
ICMA’s Chartered Management Accountant, Mar-Apr 2026 58