Pakistan’s trade deficit surged 32.92 percent during the first quarter of the current fiscal year (July–September), reaching $9.36 billion, according to data released by the Pakistan Bureau of Statistics (PBS). The widening deficit was driven by a sharp rise in imports alongside a decline in exports. Imports during July–September increased 13.49 percent to $16.97 billion, while exports fell 3.83 percent, settling at $7.60 billion. On a monthly basis, Pakistan’s trade deficit in September 2025 expanded significantly, registering a 45.83 percent year-on-year increase, reaching $3.34 billion. Compared to August 2025, the deficit also rose 16.33 percent. Imports in September totaled $5.84 billion, while exports dropped 11.71 percent year-on-year, amounting to $2.50 billion. Economists caution that the growing gap between imports and exports highlights mounting challenges in Pakistan’s external sector, adding pressure on foreign exchange reserves and the balance of payments. Earlier, in July 2025, Pakistan’s trade deficit widened to $2.75 billion, marking a 16.02 percent increase compared to June 2025, according to PBS. Exports, however, grew 16.91 percent in July compared to the same month last year, reaching $2.697 billion, up from $2.307 billion in July 2024. Imports in July also climbed 29.25 percent, totaling $5.449 billion, compared to $4.216 billion in the same month last year. This pushed the trade deficit up 44.16 percent, from $1.909 billion in July 2024 to $2.752 billion in July 2025. On a month-on-month basis, exports in July increased by 8.88 percent compared to $2.477 billion in June 2025. According to PBS data, the exports in July (FY2025-26) were recorded at $2.697 billion as compared to the exports of $2.307 billion in July (FY2024-25). The imports during July 2025 also increased by 29.25 percent and were recorded at $5.449 billion against the imports of $4.216 billion in last July. Based on the figures, the trade deficit increased by 44.16 percent by increasing from $1.909 billion last July to $2.752 billion, this year. Meanwhile, on month-on-month basis, the exports from the country witnessed an increase of 8.88 percent in July when compared to the exports of $2.477 billion in June 2025.
Pakistan’s trade deficit rises 33% in Q1 of FY25
