Islamabad, May 2, 2025 — Pakistan has reported a steep year-on-year rise in its trade deficit, which surged by 55% in April 2025, highlighting growing concerns over the country’s external trade balance.
According to the latest data released by the Pakistan Bureau of Statistics (PBS), the trade deficit widened to $3.39 billion in April 2025, up from $2.18 billion recorded in the same month last year. This marks the highest monthly trade deficit Pakistan has seen in the past three years.
Mohammad Sohail, CEO of Topline Securities Limited, noted that the April figures point to mounting pressure on Pakistan’s foreign exchange reserves and emphasize the need for prudent policy measures to address the growing imbalance in external trade.
A sharp decline in exports was one of the key drivers of this widening deficit. Pakistan’s exports fell by 19% in April 2025 to $2.14 billion, compared to $2.65 billion in April 2024. In contrast, imports surged by 14.52%, reaching $5.53 billion, up from $4.83 billion in the same period of the previous year, according to Pakistan Bureau of Statistics.
On a month-on-month basis, the trade deficit expanded by 35.79% in April alone. Exports fell 8.93% from March, while imports rose 14.09%, underscoring a troubling short-term trend.
Cumulatively, during the first ten months (July to April) of the fiscal year 2024–25, the overall trade deficit grew by 8.81% to $21.35 billion, compared to $19.62 billion during the same period last year. While exports increased by 6.25% to $26.86 billion, imports rose at a faster pace of 7.37%, totaling $48.21 billion.
Analysts warn that unless export performance rebounds and import demand is curbed, the widening trade gap could put additional strain on Pakistan’s fragile economy. The significant deterioration in April’s external trade figures may also have implications for the country’s ongoing negotiations with international lenders.