Islamabad, September 2, 2025 – Pakistan’s trade deficit expanded sharply by 29% during the first two months (July–August) of the fiscal year 2025-26, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.
The trade deficit for July–August 2025 stood at $6.01 billion, compared to $4.66 billion in the same period last year. The surge reflects higher import payments and relatively modest export growth, adding pressure to the country’s external account position.
Trade Performance – July to August 2025
| Category | FY26 (USD Mn) | FY25 (USD Mn) | % Change |
| Exports | 5,102 | 5,069 | 0.65% |
| Imports | 11,115 | 9,730 | 14.23% |
| Trade Deficit | -6,013 | -4,661 | 29.01% |
The figures reveal that while exports increased slightly by 0.65% to $5.1 billion, imports jumped by over 14%, widening the trade deficit.
Monthly Comparison – August 2025 vs. August 2024
| Category | Aug 2025 (USD Mn) | Aug 2024 (USD Mn) | % Change |
| Exports | 2,417 | 2,762 | -12.49% |
| Imports | 5,285 | 4,966 | 6.42% |
| Trade Deficit | -2,868 | -2,204 | 30.13% |
Exports fell sharply in August 2025, while imports continued to rise, resulting in a 30% increase in the monthly trade deficit.
Outlook
Analysts warn that if the trend continues, the widening trade deficit could strain foreign exchange reserves and add pressure to the Pakistani rupee. They suggest measures such as curbing unnecessary imports, promoting export-oriented industries, and exploring new trade markets to stabilize the balance of payments.