Islamabad [Pakistan], August 13 (ANI): Pakistan's trade deficit surged by a staggering 44 per cent in July, driven by a sharp increase in imports, raising fresh concerns about the country's economic situation, which is already in a crisis, The Express Tribune reported.

According to The Express Tribune, Pakistan's Planning Minister Ahsan Iqbal attempted to downplay the development, calling it a 'temporary dip,' and claimed it would be offset by future export growth tied to rising imports of raw materials.

Speaking at the launch of the Pakistani government's first monthly development report for fiscal year 2025-26, Iqbal insisted that Pakistan's exporters could benefit from preferential US tariff rates, but only if they managed to enter global markets, something that remains uncertain.

As per The Express Tribune, the spike in the deficit, reported by the Pakistan Bureau of Statistics (PBS), pushed the trade gap to USD 2.7 billion in July, up 44 per cent from the same month last year.

This increase comes as the government slashed import duties in line with conditions from the International Monetary Fund (IMF) and World Bank, further raising questions about Pakistan's growing dependency on external institutions for policy direction.

Officials have tried to rationalise the import surge, suggesting it may be due to businesses holding off on shipments to benefit from lower duties introduced in the new fiscal year.

Iqbal claimed that macroeconomic conditions are improving, citing a 17 per cent rise in exports in July, The Express Tribune reported.

Yet, with the country's external accounts under pressure and foreign reserves still fragile, many see these optimistic projections as premature.

For Pakistan, exports reached USD 2.7 billion in July, a 16.9 per cent increase from last year, while remittances grew by 7.4 per cent to USD 3.2 billion, The Express Tribune reported, citing the report.

These figures the government attributes to overseas confidence. (ANI)