Islamabad, November 5, 2025 – Pakistan’s trade deficit surged by a massive 38% during the first four months (July–October) of fiscal year 2025–26, driven by rising imports and shrinking exports, according to official data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
The report revealed that the country’s trade deficit widened to $12.58 billion, compared with $9.12 billion recorded during the same period last year.
The sharp increase in imports and decline in exports have both contributed to the ballooning trade gap. According to PBS data, imports jumped 15% to $23 billion during July–October FY26, up from $20 billion a year earlier.
Analysts attribute the rising import bill to the economic rebound, increased demand for industrial goods, and the strong US dollar, which has made imports more expensive.
Conversely, Pakistan’s exports fell 4% to $10.45 billion, compared with $10.89 billion during the same period of FY25. Experts said that global trade tensions and weak demand have dampened export performance, though they remain hopeful for a rebound in the coming months.
On a month-on-month (MoM) basis, exports grew 14% in October 2025, reaching $2.85 billion from $2.5 billion in September. Imports during the same month increased 3.57% to $6.06 billion, bringing the monthly trade deficit to $3.21 billion, a 4.2% contraction from the previous month.
However, on a year-on-year (YoY) basis, the October trade deficit widened 56%, reaching $3.21 billion, primarily due to a 4.46% drop in exports and a 20% surge in imports.