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Pakistan’s Trade Deficit Jumps 24% in December Amid Rising Imports
Pakistan’s trade deficit rose 24% in December to $3.71bn as imports surged to $6.2bn while exports fell 4%, pushing the six-month trade shortfall to $19.2bn.
ND
by News Desk
2026-01-02
Pakistan’s Trade Deficit Jumps 24% in December Amid Rising Imports

Pakistan’s trade deficit widened sharply in December 2025, increasing by 24% compared to the same month last year, driven by a surge in imports following the relaxation of import policies.

According to official data, the trade deficit in December 2024 stood at $3 billion, which jumped to $3.71 billion in December 2025. Imports for the month crossed the $6 billion mark, reaching $6.2 billion, while exports declined by 4% on a monthly basis to $2.32 billion. The State Bank of Pakistan reported that imports increased by 20% compared to the previous month, further exacerbating the trade imbalance.

The persistent rise in imports, coupled with falling exports, has added pressure to the country’s external accounts. During the first six months of the current fiscal year, Pakistan imported goods worth $34 billion, whereas exports totaled only $15 billion, resulting in a cumulative trade deficit of $19.2 billion.

Economists have highlighted that the widening trade gap poses challenges for the balance of payments and foreign exchange reserves, underscoring the need for export promotion and import management measures. Analysts also noted that the relaxation of import policies has contributed to short-term economic activity but has significantly increased the trade deficit.

The government is expected to consider measures to stabilize the external account, including steps to boost domestic production, enhance export competitiveness, and regulate non-essential imports.
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