Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 67 SECTION-2 2024 2.1.4. Saudi Arabia: A Major Oil Supplier Saudi Arabia was another key source of energy import for Pakistan, contributing to 8.8 percent in overall imports from the country. Crude oil imports, in particular, were crucial for meeting Pakistan’s energy demands. The reliance on Saudi Arabia for crude oil imports has remained consistent, with a steady increase in imports reflecting Pakistan’s growing energy needs. Table 64: Top Commodities Imported from Saudi Arabia Commodity IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL IMPORTS FROM SAUDI ARABIA 4,792 4,303 11.4 Petroleum Crude 3,752 3,033 23.7 Plastic Materials 399 562 -28.9 Fertilizers 169 84 100.2 Petroleum Products 13 88 -84.7 Aluminium wrought 12 5 122.4 Milk, Cream & Milk Products 2 3 -15.5 Iron & Steel 1 7 -83.6 2.1.5. Other Key Import Sources
In addition to the major trading partners discussed above, Pakistan also sourced a significant portion of its imports from countries like Qatar, Indonesia and Kuwait during FY 2024. Qatar: Pakistan’s imports from Qatar represented 6.6 percent of total imports in FY 2024, up by 0.4 percent from FY 2023. This increase reflects the strengthening trade relationship between the two countries. Energy commodities, especially LNG, play a pivotal role in this growth. Qatar remains a vital partner in fulfilling Pakistan’s energy needs, particularly through its LNG supplies. The rise in imports highlights Qatar’s importance as a reliable energy supplier. As Pakistan’s demand for energy grows, trade with Qatar is expected to expand further. This partnership emphasizes the strategic significance of energy trade. Strengthening ties will likely benefit both nations in the long term. Indonesia: Pakistan’s imports from Indonesia made up 6.1 percent of total imports in FY 2024, marking a sharp decline of 22.1 percent compared to FY 2023. This drop highlights reduced demand for key commodities, particularly palm oil. Despite the downturn, Indonesia remains a significant trading partner for Pakistan. The decrease may reflect shifting market dynamics or local adjustments in consumption patterns. However, Indonesia’s role in supplying essential goods to Pakistan remains crucial. The decline underscores the need for both nations to explore diversified trade opportunities. Strengthening trade ties could help mitigate future fluctuations. Collaborative efforts could revitalize bilateral trade in the coming years. Kuwait: In FY 2024, Pakistan’s imports from Kuwait made up 3.9 percent of its total imports, reflecting a 4.2 percent decline compared to FY 2023. The decrease is largely attributed to reduced petroleum imports, a key component of Pakistan’s trade with Kuwait. This downturn may result from fluctuating global oil prices or Pakistan’s adjustments in energy procurement strategies. Despite this decline, Kuwait continues to be a crucial supplier for Pakistan’s energy sector. The relationship highlights Kuwait’s importance in meeting Pakistan’s petroleum demands. As an established energy partner, Kuwait plays a vital role in ensuring Pakistan’s energy security. The reduction in imports might also indicate efforts by Pakistan to diversify its energy sources. However, the long- standing trade ties between the two countries remain strong. Kuwait’s role in Pakistan’s energy landscape is unlikely to diminish in the near future. Both nations can benefit from exploring new areas of economic collaboration to strengthen their partnership further. 2.1.6. Regional Analysis of Imports Asia remained the largest trading partner, with imports increasing by 8.3 percent to US$24,999 million, driven by significant growth from Eastern Asia, which surged by 21.7 percent to US$17,250 million. However, imports from South-Eastern Asia declined by 10.1 percent, reflecting a drop in trade activity with the region. South- Central Asia recorded the steepest decline in Asia, with imports falling by 28.7 percent to US$975 million, while Western Asia showed a 50 percent decrease. The Middle East, a key partner, saw a slight decline of 1.1 percent, with imports totalling US$18,282 million. Despite regional variations, Asia continues to dominate Pakistan’s trade landscape, highlighting its critical role in meeting the country’s import needs. Imports from the Americas experienced a sharp contraction, falling by 45.1 percent to US$2,184 million in FY 2024. North America, the largest contributor from the region, saw imports decline by 41.5 percent to US$1,585 million. South America recorded an even steeper drop of 58.8 percent, while
68 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y Central America experienced a 24.5 percent decrease. In contrast, Latin America showed an exceptional growth of 331.6 percent, though from a small base, increasing from US$11 million in FY 2023 to US$49 million. This growth highlights emerging trade opportunities in the region. Europe also saw a decline, with imports dropping by 8.9 percent to US$5,394 million. Western and Southern Europe witnessed decreases of 17.3 percent and 21.5 percent, respectively, while Eastern Europe showed positive growth, increasing by 12.1 percent to US$1,670 million. These trends underline shifting trade dynamics with key regions. Table 65: Region-wise Pakistan’s Imports Sources REGION IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE GRAND TOTAL 54,779 55,198 -0.8 ASIA 24,999 23,093 8.3 EASTERN ASIA 17,250 14,176 21.7 SOUTH-EASTERN ASIA 6,762 7,525 -10.1 SOUTH-CENTRAL ASIA 975 1,368 -28.7 WESTERN ASIA 12 24 -50 MIDDLE EAST 18,282 18,490 -1.1 AMERICA 2,184 3,981 -45.1 NORTH AMERICA 1,585 2,711 -41.5 SOUTH AMERICA 479 1,164 -58.8 CENTRAL AMERICA 71 95 -24.5 LATIN AMERICA 49 11 331.6 EUROPE 5,394 5,922 -8.9 WESTERN EUROPE 2,207 2,669 -17.3 EASTERN EUROPE 1,670 1,490 12.1 NORTHERN EUROPE 1,000 1,104 -9.4 SOUTHERN EUROPE 517 660 -21.5 AFRICA 3,004 2,883 4.2 EASTERN AFRICA 963 959 0.3 NORTHERN AFRICA 693 839 -17.4 WESTERN AFRICA 877 420 108.8 SOUTHERN AFRICA 407 645 -36.9 MIDDLE AFRICA 65 19 236.2 AUSTRALIA AND NEW ZEALAND 863 830 4 OTHER REGION 18,335 18,491
Africa showed a positive trend, with imports rising by 4.2 percent to US$3,004 million in FY 2024. Western Africa led this growth, with imports surging by 108.8 percent to US$877 million, while Middle Africa recorded an exceptional increase of 236.2 percent, albeit from a smaller base. Eastern Africa remained stable, growing marginally by 0.3 percent, while Northern and Southern Africa saw declines of 17.4 percent and 36.9 percent, respectively. Imports from Australia and New Zealand increased modestly by 4 percent, reaching US$863 million, indicating steady trade ties with the region. Meanwhile, imports from “Other Regions” remained relatively stable at US$18,335 million. These regional variations emphasize the importance of exploring new trade opportunities while maintaining strong relationships with key partners to ensure a balanced and diversified trade portfolio.
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 69 SECTION-3 2024
Annual Analytical Report on External Trade Statistics of Pakistan
2 0 2 4
F Y
71
SECTION-3
2024
3. PAKISTAN’S TRADE BY ECONOMIC
CATEGORY
3.1. Export by economic category
In FY 2024, Pakistan’s exports saw modest growth
across various economic categories, contributing to the
country’s total export revenue of US$ 30.675 billion.
These economic categories, as defined by global
trade classifications, include primary commodities,
manufactured goods, services, and more recently,
emerging sectors such as digital services and chemicals.
Table 66: Pakistan’s Primary Commodities Exports
Commodity
VALUE (MILLION US$)
FY 2024
FY 2023
% CHANGE
PRIMARY COMMODITIES
6,716
4,427
51.7
RICE
3,916
2,187
79
FRUITS & VEGETABLES
727
539
34.8
FISH
404
497
-18.8
SPICES
110
94
17.1
RAW COTTON
(INCLUDING LINTER & WASTE)
94
65
44.2
TOBACCO UN-MANUFACTURED
52
58
-10.9
HIDES & SKINS (INCLUDING FUR
SKINS)
5
5
-4.9
RAW WOOL
(INCLUDING ANIMAL HAIR)
1
1
-25.6
OTHER PRIMARY COMMODITIES
1,408
980
43.7
Pakistan’s export composition continues to be
dominated by manufactured goods, particularly textiles
and apparel, alongside primary commodities such
as rice and agricultural produce. However, services,
especially IT services, have been gaining momentum as
key contributors to export revenues.
3.1.1. Pakistan’s Export Composition by Eco
nomic Category FY 2024
Primary Commodities
Primary commodities, including agricultural products,
minerals, and raw materials, remain a cornerstone of
Pakistan’s export economy. The primary commodity
sector grew by 51.7 percent, driven by increased exports
of rice, wheat, and seafood, particularly to Asian markets.
Semi- Manufactured & Manufactured Goods
Manufactured goods dominated Pakistan’s export
basket, particularly textiles and apparel, which made up
54.3 percent of the country’s total exports. Manufactured
exports grew by 2.8 percent in FY 2024, reflecting strong
global demand for Pakistani textiles and an emerging
growth in industrial products. Textiles and apparel
continued to be the top contributor to manufactured
goods. Other manufactured goods like leather products,
sports goods, and surgical instruments saw solid growth,
especially in markets such as Europe and North America.
Table 67: Pakistan’s Manufactured Commodities Exports
Commodities
VALUE (MILLION US$)
FY 2024
FY 2023
% CHANGE
SEMI & MANUFACTURED GOODS
23,959
23,297
2.8
ACCESSORIES
(INCLUDING HOSIERY)
7,974
7,886
1.1
COTTON FABRICS WOVEN
1,863
2,011
-7.4
CHEMICAL & CHEMICAL PREPA
RATIONS
1,499
1,381
8.5
COTTON YARN
960
859
11.8
MANUFACTURE OF LEATHER
600
635
-5.5
TEXTILE FABRICS
379
425
-10.9
PETROLEUM PRODUCTS
352
50
606
SPORTS GOODS
310
304
1.9
MACHINERY & TRANSPORT
EQUIPMENT
265
252
4.9
FOOTWEAR
162
178
-8.9
LEATHER
138
167
-17.7
FRUIT & VEGETABLE PREPARA
TIONS
87
69
25.3
CEREAL PREPARATIONS
87
97
-10.6
WOOLEN CARPETS
59
71
-17.1
GUAR PRODUCTS
49
48
1
FISH MEAL & MEAT MEAL
44
56
-20.9
MOLASSES
35
24
46.5
TOBACCO MANUFACTURED
26
20
33.6
FISH PREPARATIONS
7
8
-12.3
OTHER MANUFACTURED
GOODS
9,064
8,756
3.5
Services Sector Export
The services sector, particularly IT and software
services, experienced significant growth in FY 2024,
contributing US$ 7.8 billion to total exports. Pakistan’s
services exports grew by 2.7 percent, reflecting the
country’s increasing prominence in the global digital
economy.
IT and software services led the services export
category, making up 41.3 percent of the total. Growth
72 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y of 24.3 percent in this area was driven by increased outsourcing contracts from North America and Europe, while transport and financial services also contributed significantly. Table 68: Pakistan’s Export of Services Service Type VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE Total Export of Services 7,803 7,596 2.7 IT & Software Services 3,223 2,596 24.2 Transport Services 859 927 -7.3 Travel Services 759 972 -21.9 Other Business Services 1,550 1,627 -4.7 Government Goods & Services 1,174 1,112 5.6 Other Services 238 362 -34.3 Emerging Sectors Emerging sectors in Pakistan’s export economy, including chemicals, pharmaceuticals saw robust growth in FY 2024. These sectors are part of Pakistan’s efforts to diversify its export base beyond traditional products. Chemicals and pharmaceuticals led this category, particularly driven by the export of generic drugs to Africa and the Middle East. 3.1.2. Key Drivers of Export Growth by Eco nomic Category Several factors contributed to the growth across Pakistan’s eco nomic categories in FY 2024: • Global Demand for Textiles: Global demand for textiles, particularly from Europe and North America, remained strong, sustaining Pakistan’s dominance in the sector. • IT Services Growth: The rise in outsourcing and the growing digital economy drove demand for Pakistan’s IT and software services. • Diversification Efforts: The growth in chemicals, pharmaceuticals, and processed foods indicates a positive shift toward a more diversified export base. • Regional Trade: Increased exports of agricultural commodities to neighbouring countries, particularly Afghanistan, China, and Middle Eastern countries, provided a solid base for primary commodity growth. In FY 2024, Pakistan’s export economy showcased resilience and growth across various economic categories. While manufactured goods, led by textiles, remained the dominant export category, the services sector, particularly IT, and emerging sectors like chemicals and pharmaceuticals, displayed encouraging progress. The growth across these categories’ points to Pakistan’s ongoing efforts to diversify its export base and tap into new markets. 3.2. Pakistan’s Import Data by Broad Economic Category (BEC) The minor contraction in imports during FY 2024 reflects several changes in demand for intermediate, consumer, and capital goods. 3.2.1. Intermediate Goods: Steady Demand Despite Marginal Decline Intermediate goods continued to dominate Pakistan’s import portfolio, accounting for 61.0 percent of total imports in FY 2024, maintaining their pivotal role in the country’s industrial production and manufacturing sectors. However, the import value of intermediate goods slightly declined from $33.5 billion in FY 2023 to $33.4 billion in FY 2024, showing a marginal 0.1 percent decrease. This stability suggests that Pakistan’s industrial sector maintained consistent demand for raw materials, despite global economic challenges. 3.2.2. Consumer Goods: A Subtle Decline Amid Shifting Consumption Patterns Consumer goods, which represent 32.3 percent of total imports, saw a more pronounced reduction in FY 2024. Imports in this category decreased by 1.2 percent, dropping from $17.9 billion in FY 2023 to $17.7 billion in FY 2024. This decline could be attributed to reduced domestic consumption or changes in global prices for essential consumer commodities such as food products and electronics. It highlights a shift in household spending patterns and a potential focus on import substitution in certain sectors. 3.2.3. Capital Goods: A Notable Contraction in Investment The import of capital goods saw the largest decline, reflecting a decrease in investment in machinery and equipment. The value of capital goods imports dropped from $3.8 billion in FY 2023 to $3.6 billion in FY 2024, representing a 4.3 percent decrease. This