Islamabad, July 2, 2025 – Pakistan’s trade deficit surged to $26.27 billion in the fiscal year 2024-25, marking a significant 9% increase compared to the previous year, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
The widening trade deficit highlights growing concerns over the country’s external account stability and dependency on imports.
Exports during FY 2024-25 stood at $32.11 billion, showing a moderate growth of 4.67% from the previous fiscal year’s $30.68 billion. While this growth in trade is a positive sign, it was overshadowed by a steeper rise in imports. Pakistan’s import bill ballooned to $58.38 billion, up by 6.57% from $54.78 billion recorded in FY 2023-24. The disproportionate growth between exports and imports directly contributed to the expanding deficit, putting added pressure on the country’s foreign exchange reserves.
Despite the annual rise, some short-term improvements were observed. On a Year-on-Year (YoY) basis, the trade deficit in June 2025 narrowed by 3.45%, settling at $2.32 billion compared to $2.41 billion in June 2024. Exports in June 2025 registered a marginal decline of 0.59%, totaling $2.54 billion compared to $2.56 billion in the same month last year. Imports also slipped by 1.97% to $4.86 billion from $4.96 billion, reflecting a slight slowdown in import demand.
Month-on-Month (MoM), the data presents a more encouraging picture. The trade deficit in June 2025 contracted sharply by 9.47% compared to May 2025. This decline was driven by a 4.79% drop in exports and a 7.08% fall in imports, suggesting subdued trade activity across both sectors, possibly due to seasonal factors or policy interventions.
The persistent trade deficit remains a major challenge for Pakistan’s economic managers. Experts emphasize the need for export diversification, reduced reliance on imported goods, and long-term trade reforms to curb the growing gap. Without substantial structural changes, the country’s external account may remain vulnerable in the face of global economic shifts and rising import costs.