ISLAMABAD – Pakistan’s trade deficit widened by more than 38 percent during the first four months of the 2025-26 fiscal year, highlighting growing economic pressures as exports continue to decline.
According to data released by the Pakistan Bureau of Statistics (PBS), the trade deficit between July and October 2025 stood at $12.58 billion, compared to $9.11 billion during the same period last year. The report showed that exports fell by over 4 percent, totaling $10.448 billion, while imports surged by 15.13 percent, surpassing $23 billion.
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In October alone, exports rose 14 percent month-on-month to $2.84 billion, while the trade deficit for the month narrowed 4.21 percent compared to September, settling at $3.20 billion. However, PBS data indicated that imports in October were 3.57 percent lower than in September, and exports dropped 4.46 percent year-on-year compared to October 2023.
Economic experts warn that the persistent rise in imports coupled with declining exports is adding significant strain to Pakistan’s already fragile external sector and foreign exchange reserves.
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