Pakistan’s trade deficit widened by 9 percent in the fiscal year 2024–25 (FY25), reaching $26.27 billion, up from $24.10 billion in the previous fiscal year, according to fresh data released by the Pakistan Bureau of Statistics (PBS).
The increase in the trade gap was driven by a notable rise in imports, which outpaced export growth during the year.
Pakistan’s exports rose 4.7 percent year-on-year to $32 billion in FY25, compared to $30.67 billion in FY24. While the uptick signals some recovery in outbound shipments, it was overshadowed by a 6.6 percent increase in imports, which climbed to $58.38 billion, up from $54.78 billion in the previous fiscal year.
The surge in imports, despite a weak rupee and tighter monetary conditions, reflects increased demand for raw materials, energy, and machinery in the country, analysts say.
On a monthly basis, June 2025 showed mixed signals:
Exports in June stood at $2.54 billion, down 0.6 percent year-on-year and 4.8 percent lower than May 2025.
Imports for the month came in at $4.86 billion, representing a 2 percent decline compared to June 2024 and a 7.1 percent drop from the previous month. The monthly trade deficit stood at $2.56 billion.
While the decline in monthly imports offers some relief, the overall rise in the annual trade deficit underscores continued pressure on Pakistan’s external account.
Economists warn that narrowing the trade gap will require more structural reforms in the export sector and a strategic shift in import substitution and value-added production.
