Pakistan’s trade deficit increased by 33.4% in February 2025, reaching $2.3 billion, up from $1.72 billion in the same month last year, according to data released by the Pakistan Bureau of Statistics on Monday.

Exports fell by 5.57% to $2.44 billion compared to $2.58 billion in February 2024. In contrast, imports surged by 10% to $4.738 billion, up from $4.306 billion in the same month last year.

On a month-over-month basis, exports dropped significantly by 17.35% from $2.95 billion in January 2025, while imports decreased by 9.9% from $5.26 billion in the previous month.

During the first eight months of the current fiscal year, total exports rose by 8.17%, reaching $22.02 billion, compared to $20.36 billion in the same period last year. With four months remaining in the fiscal year, policymakers are optimistic about sustaining this upward trend and expect to surpass the $33 billion export mark by the end of June.

However, imports during July-February 2024-25 increased by 7.4% to $37.8 billion, up from $35.2 billion. Despite the rise in exports, the overall trade deficit grew by 6.33% to $15.78 billion.

The decline in exports could impact the current account position, which has been a persistent economic vulnerability for Pakistan. The current account balance recorded a deficit of $420 million in January 2025, marking the first deficit in four months, following surpluses in October, November, and December 2024.

Additionally, the Statistical Bureau reported on trade in services, indicating that services exports increased to $4.75 billion during the first seven months of FY2024-25 (July-January), reflecting a 6.16% year-on-year growth compared to $4.47 billion in the same period last year. Services imports also rose by 9.15% to $6.678 billion, resulting in a deficit of $1.93 billion, up 17.3% from $1.645 billion last year.

In January 2025, services exports grew by 1.15% to $691.6 million, while imports increased to $1.0 billion from $968.6 million in January 2024, showing a 3.84% rise.