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Pakistan’s Trade Deficit Widens by 38% in First Four Months of Fiscal Year 2025
Pakistan’s trade deficit surged by 38% in the first four months of FY2025, reaching $12.58 billion, as imports jumped 15% and exports fell over 4%.
MH
by Muhammad Hashir
2025-11-04
Pakistan’s Trade Deficit Widens by 38% in First Four Months of Fiscal Year 2025

Pakistan’s trade deficit widened sharply by 38 percent during the first four months of the current fiscal year, reflecting rising import costs and declining export performance, according to the latest data released by the Pakistan Bureau of Statistics (PBS).

From July to October 2025, the trade deficit reached $12.58 billion, compared to $9.11 billion recorded during the same period last year — a difference of $3.467 billion.

The report shows that exports dropped by 4.05 percent, with total export value standing at $10.448 billion, while imports surged by 15.13 percent, crossing the $23 billion mark.

Despite the overall decline, October 2025 saw a slight recovery as exports rose 14 percent compared to September — increasing from $2.49 billion to $2.84 billion.

On a monthly basis, the trade deficit narrowed by 4.21 percent, standing at $3.20 billion in October. However, imports still grew by 3.57 percent, exceeding $6 billion.

When compared to October 2024, Pakistan’s exports declined by 4.46 percent last month, underlining the persistent challenges in the external sector amid global market volatility and domestic production costs.

Economists attribute the widening deficit to a combination of factors, including higher energy and machinery imports, currency pressures, and weaker global demand for Pakistani goods.

Analysts suggest that unless export competitiveness improves and import dependency is reduced, Pakistan’s trade gap may continue to strain its foreign exchange reserves and macroeconomic stability in the coming months.
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exports

PakistanEconomy

tradedeficit

Imports
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