Jam says rise in Dec imports reflects revival of industrial activity

ISLAMABAD: Minister for Commerce Jam Kamal Khan said that Pakistan’s imports rose from $ 5 billion to $ 5.2 billion in December 2024.

In a written reply to a question posed in the National Assembly on Friday, Jam Kamal Khan said that this surge in imports has widened the trade deficit, which crossed $ 2 billion, standing at $ 2.35 billion in December 2024 adding that Pakistan’s trade deficit has slightly increased to $ 10.4 billion in the first two quarters of FY 2024-25 (July-December) from $ 10.3 billion compared with the same period of last fiscal year.

The minister said that the primary driver behind the increase in imports is the ongoing economic growth.

Jul-Jan exports up 9.98pc to $19.551bn YoY

He said that both the Asian Development Bank (ADB) and the International Monetary Fund (IMF) have revised Pakistan’s growth estimates upward for FY25 to 3.0 and 3.2 percent respectively, reflecting improved economic performance. He said that the increase in Pakistan’s imports reflects a revival in industrial activity, with several key sectors experiencing growth.

Jam Kamal further noted that in December FY25 compared to FY24 imports of power generation and transmission equipment (e.g., solar panels, transformers, converters) rose by 60%, reaching $ 319.0 million. Industrial machinery and equipment saw a 20% increase, while textile industrial machinery imports surged by 40%, indicating expansion in production capacity, he said adding that imports of auto parts for heavy vehicles and trailers climbed by 58%, reflecting growth in the transport and logistics sectors.

He said that additionally, heavy equipment and parts imports more than doubled, growing by 109%.

Kamal said that this broad-based rise in industrial imports highlights the growing demand for infrastructure and production-related equipment, driven by economic growth and improved business sentiment. He said that the surge in Pakistan’s imports has also supported increasing domestic demand because of declining consumer inflation and declining interest rates.

Answering another written question, the Minister said that during the period of July to December 2024-25, Pakistan exported a total of 105,690.3 metric tons (MT) of citrus fruits, generating a revenue of $ 30.9 million.

He said that the largest export destination for citrus fruits was Afghanistan, which imported 77,547.44 MT, contributing $ 16.72 million, or over 54% of total revenue. This highlights Afghanistan’s dominance as the primary market for Pakistani citrus fruits, he said.

He said that other significant contributors included the United Arab Emirates (UAE), with 9,173.09 MT exported, generating $ 3.99 million, and Indonesia, which imported 6,384.01 MT and contributed $ 3.30 million. These three markets collectively accounted for the majority of both volume and revenue, he said.

Copyright Business Recorder, 2025