Trade Deficit: Pakistan’s imports jump 19% in July, pushing gap up 26%

ISLAMABAD: Trade Deficit pressures intensified in July as Pakistan’s imports rose by 19%, pushing the country’s trade gap up by 26%, according to data from the Pakistan Bureau of Statistics.

The increase reflected higher purchases across several major categories. These included food products, machinery, vehicles and transport equipment, textile inputs, agricultural equipment, chemicals and metals.

Food imports exceed $805 million

Food imports reached $805.4 million in July, equivalent to more than Rs224 billion. The import bill included baby milk and cream, spices, soybeans, palm oil, sugar and pulses.

Imports of baby milk and cream alone rose 25% to $18.7 million. Pakistan also imported 112 metric tons of sugar during the month.

The sugar imports came despite government claims that around 108,000 metric tons of surplus sugar are currently available in the country.

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Machinery imports rise 41%

Machinery recorded one of the largest increases, with imports climbing 41% to $1.31 billion.

The category covered equipment for power generation, offices, textiles, agriculture, construction and telecommunications.

The increase points to stronger demand for imported machinery across productive and infrastructure-related sectors.

Meanwhile, transport equipment imports, including vehicles, jumped 40% to a record $420 million. The surge added significantly to the overall import bill.

Textile and agricultural imports grow

Textile-related imports increased 15% to $680 million, with raw cotton among the key imported inputs.

Pakistan’s textile sector continues to depend on imported raw materials and production inputs to support manufacturing and exports.

Imports of agricultural equipment and chemicals also rose 23%. Their combined value exceeded $1 billion during July.

Metal imports add to pressure

Imports of metals, including gold, steel and iron, increased by 23%. Precious metal imports alone exceeded $730 million.

The broad-based rise across food, machinery, transport equipment, textiles, agriculture and metals pushed the national trade deficit higher.

The latest figures underline continued pressure on Pakistan’s external account as the country’s import bill grows across several major sectors.