Islamabad, June 4, 2025 – Pakistan has reported that trade deficit rose sharply by 26% year-on-year in May 2025, mainly due to a notable decline in exports.
According to the latest figures from the Pakistan Bureau of Statistics (PBS), in May 2025, the trade deficit stood at $2.62 billion, compared to $2.08 billion during the same month last year. The widening gap in trade is largely because of a 10% drop in exports, which fell to $2.55 billion from $2.84 billion in May 2024.
While exports declined, imports continued to grow—though more slowly. Imports reached $5.17 billion in May 2025, showing a 5.23% increase from $4.92 billion in the same month last year. This mismatch between lower exports and rising imports has caused the trade deficit to grow further.
On a broader scale, Pakistan’s trade deficit also worsened over the first 11 months (July–May) of the fiscal year 2024–25. The cumulative trade deficit during this period reached $24 billion, up by 10.63% from $21.70 billion in the same period of the previous fiscal year.
During these eleven months, Pakistan’s total exports rose by 4.72%, reaching $29.45 billion, compared to $28.12 billion in the same period last year. However, this improvement in exports was not strong enough to offset the rise in imports.
Imports during the July–May period increased by 7.30%, totaling $53.45 billion, compared to $49.82 billion last year. As a result, the widening gap between imports and exports continues to burden Pakistan’s trade performance.
Experts say Pakistan must address this growing trade deficit seriously, as it puts pressure on foreign exchange reserves and adds stress to the overall economy. To manage the trade deficit, the country needs to strengthen export sectors while controlling non-essential imports in the months ahead.
Policymakers are being urged to introduce sustainable trade reforms, promote local industries, and stabilize the rupee to prevent further economic strain.