Qudsia Bano

Pakistan’s export growth is being viewed by experts as a key indicator of renewed economic energy, driven by rising global demand and improved capacity at home.

Dr Mahwish Farooq, Assistant Professor of Trade Policy at the University of the Punjab, said the export sector is showing promising signs of stability after months of uncertainty. “Sustained export performance, especially with back-to-back monthly gains, signals that Pakistan’s industries are becoming more responsive and competitive,” she said.

She pointed to the July 2025 figures that showed yet another increase over the previous month, reaching nearly 2.7 billion dollars, up by around 17% from a year ago and almost 9% higher than June. “When you see growth not just compared to last month but also over the same period last year, it’s an indication that buyers are returning and staying with Pakistani exporters,” she added.

Imran Naseer, an export trade economist from Applied Economics Research Centre, University of Karachi, agreed, saying this momentum reflects more than just numbers. “The broader takeaway here is that Pakistan’s export engine is running again. It’s not just textiles anymore. We are seeing increased activity in processed food, light engineering goods, and services like IT,” he said.

Naseer pointed out that along with the rise in exports, imports had also gone up but in a way that suggested industrial preparation. In July 2025, exports were recorded at Rs765 billion or $2.697 billion compared to Rs701 billion or $2.477 billion in June. Imports stood at Rs1,550 billion or $5.449 billion in July, rising from Rs1,372 billion or $4.849 billion the previous month.

Year-on-year, the export growth in rupee terms was 19.25% while imports saw a 32.11% increase, indicating growing economic activity. Naseer noted that much of the import growth is linked to machinery, industrial raw materials, and intermediate goods which typically signal rising production. “This isn’t consumption-led importing. This is productive input. It means factories are getting busier,” he said.

Both experts agreed that if this trend continued, the export sector could play a central role in steadying the economy. With targeted policy support, especially around energy and financing, they believe Pakistan could shift toward more sustainable trade-driven growth over the coming quarters.

Credit: INP-WealthPk