Energy and Machinery Imports Drive Structural Trade Loss in Pakistan

Pakistan's trade deficit is increasingly seen as structural, rooted in the economy's dependence on imported energy, machinery and raw materials. While the textile sector remains the biggest export earner, generating $17.97 billion last year, it barely kept pace with the rapid rise in import demand. Analysts note that domestic consumption and growth have boosted import volumes faster than export growth, inflating the trade gap to $39.5 billion for the fiscal year. The situation underscores the need for diversification of export baskets beyond low‑value textiles to mitigate the pressure on the country's external accounts.