Islamabad – Pakistan – Pakistan’s export sector experienced a sharp decline in August, with merchandise exports falling by 12.5% year-on-year to $2.42 billion, down from $2.76 billion in the same month last year. This marks the fourth contraction in five months, highlighting persistent challenges in the country’s trade performance.
The drop follows a brief increase in July, but the overall trend remains concerning, with previous months also recording negative growth. Structural issues such as high production costs, limited access to raw materials, and global demand slowdown have weighed heavily on the sector.
Imports, meanwhile, continued to rise, increasing the trade deficit and further straining the economy. Analysts emphasize the urgent need for comprehensive policy reforms and strategic measures to boost exports and improve competitiveness in global markets.
While shifts in global sourcing present potential opportunities, Pakistan must overcome structural barriers to capitalize on them effectively. The government and industry stakeholders are under pressure to implement policies that can stabilize and grow the export sector in the coming months.
This story has been reported by PakTribune. All rights reserved.