Pakistan’s exports to China rose 2% in August to $158 million, even as the country’s overall shipments fell sharply and the trade deficit widened, provisional data from the Trade Development Authority of Pakistan (TDAP) showed. In the first two months of the fiscal year (July–August), exports to China climbed 7% to $331 million, making it Pakistan’s third-largest buyer after the United States and the United Kingdom, according to Gwadar Pro on Sunday.

Overall exports dropped 12.5% year-on-year to $2.42 billion in August, while imports rose 6.4% to $5.29 billion. That pushed trade deficit to $2.87 billion, up 30% from a year earlier. For July–August, the deficit widened 29% to $6.01 billion. China also remained Pakistan’s top source of imports, with inbound shipments rising 33% to $2.99 billion in the first two months. Beijing thus remained both Pakistan’s biggest market for growth and its largest supplier of goods.

Despite the downturn, some categories bound for global and Chinese markets showed resilience. Textiles and leather, Pakistan’s mainstay sector, earned $3.39 billion during July–August, up 10% from last year. Bed linen, men’s apparel, cotton yarn and women’s garments led the way, while cement and dates also posted strong growth. Rice exports, however, fell by nearly a third.

Regionally, exports to Asia dropped 11% in the first two months, though China bucked the trend with steady growth. Economists say Beijing’s demand for Pakistani textiles, raw materials and food products is providing a crucial cushion as traditional markets in Europe and America record declines.

“China’s consistent demand has become a vital anchor for Pakistan’s exports,” economist Subhan Ahmad told Gwadar Pro. “As other markets slow, our trade with Beijing is helping sustain industrial activity and providing exporters with a reliable outlet.”

Credit: Independent News Pakistan (INP) — Pak-China