Moaaz Manzoor

Pakistan’s overall trade activity recorded a notable 14% surge in imports during September 2025, signaling strengthening industrial demand and improving domestic consumption, according to the latest data from the Trade Development Authority of Pakistan (TDAP).

While the trade deficit widened to $3.34 billion, economists say the growth in imports — particularly of machinery, vehicles, and manufacturing goods — reflects a reviving economy and improving business confidence. Imports reached $5.85 billion in September, up from $5.13 billion a year earlier, indicating renewed production momentum across key sectors.

Exports of goods totaled $2.50 billion, showing stability in major categories despite global economic headwinds and an 11.7% year-on-year decline. Textiles remained Pakistan’s strongest export segment, with continued demand for bedlinen, knitwear, and apparel helping offset broader pressures.

For the first quarter of FY2025-26 (July–September), Pakistan’s total trade volume climbed to $24.6 billion, representing 7.5% growth compared to the same period last year.

Trade officials say the expansion highlights Pakistan’s robust market linkages and resilient import capacity to fuel industrial activity. “While imports have increased, much of it is driven by productive sectors — a positive indicator for manufacturing and employment,” a TDAP spokesperson told Wealth Pakistan.

The services sector also showed encouraging momentum, with services exports rising 8.4% in August, driven by strong performances in IT, finance, and professional services.

Economists view the widening trade volume as a sign of macroeconomic stabilization and renewed market optimism. With the currency stabilizing and global demand improving, policymakers anticipate export recovery in the coming months, driven by stronger textile orders and a pickup in agricultural shipments.

Credit: INP-WealthPk