Pakistan’s export sector posted an 8.42% year-on-year increase, reaching $22.074 billion during July–February 2024–25, according to provisional data released by the Pakistan Bureau of Statistics (PBS). While textiles and agriculture dominated export earnings, surging imports of engineering-related machinery and materials underscored the sector’s growing reliance on foreign technology to fuel industrial expansion.
Engineering goods emerged as a critical import category, with electrical machinery and apparatus topping the list at Rs84.23 billion in February 2025, alongside iron and steel (Rs57.88 billion) and plastic materials (Rs50.26 billion). These imports reflect rising demand for industrial equipment, construction materials, and manufacturing inputs, signalling infrastructure and production growth. However, the trend also highlights Pakistan’s dependence on foreign engineering products, contributing to a cumulative trade deficit of $15.8 billion during the eight-month period.
Exports, though buoyed by traditional sectors like knitwear ($102 billion) and rice ($56 billion), saw a 3.56% drop in February 2025 compared to the same month last year. Analysts attribute the decline to global market volatility and rising production costs. Meanwhile, reduced imports of petroleum products and LNG in February provided temporary relief, but energy imports still dominated the import bill at Rs254.18 billion.
The government has emphasized boosting high-value engineering exports, but progress remains slow. With the trade deficit narrowing marginally to $2.319 billion in February, stakeholders urge reforms to enhance competitiveness in machinery production and value-added engineering goods. As Pakistan navigates global economic headwinds, balancing import needs with domestic engineering advancement will be pivotal to sustaining growth.
