ISLAMABAD, August 6, 2025 – Pakistan recorded a sharp increase in its trade deficit in July 2025, driven largely by a substantial rise in import payments.
According to the latest data released by the Pakistan Bureau of Statistics (PBS), the trade deficit widened by 44% to $2.75 billion, compared to $1.91 billion in July 2024.
The country’s import bill surged by 29%, reaching $5.45 billion in July 2025, up from $4.22 billion in the same month of the previous year. Meanwhile, Pakistan’s exports also posted a notable increase of 17%, climbing to $2.70 billion from $2.31 billion year-on-year.
On a month-on-month (MoM) basis, the trade deficit expanded by 16% compared to June 2025, when the deficit stood at $2.37 billion. Imports rose by 12.37% MoM from $4.85 billion, while exports grew by 9% from $2.48 billion in June.
Experts suggest that the spike in imports was due to the beginning of the new fiscal year. Many importers reportedly delayed their shipments in June 2025 amid uncertainty surrounding the federal budget, leading to a backlog that reflected in July’s figures.
Despite the growth in exports, the imbalance between import and export volumes continues to pose challenges for Pakistan’s trade stability. Analysts warn that if import demand remains unchecked, the trade deficit could further pressure the country’s foreign exchange reserves and economic planning in the coming months.