Pakistan’s trade deficit surged sharply to $3.7 billion in December 2025, up nearly 24% from last year. Exports fell while imports rose, widening the gap between the country’s shipments and purchases. The Pakistan Bureau of Statistics (PBS) released the data on Friday, highlighting growing trade pressures.
Exports in December 2025 totaled $2.32 billion, a 20% drop from $2.91 billion recorded in December 2024. Imports reached $6.02 billion, slightly higher than $5.9 billion a year earlier. On a month-on-month basis, the deficit increased over 28% from November 2025, reflecting lower shipments and rising import bills.
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During the first half of fiscal year 2025-26, Pakistan’s trade deficit rose nearly 35% to $19.2 billion. Exports declined by 9% to $15.18 billion, while imports jumped 11% to $34.39 billion. The widening gap signals continued pressure on the country’s external accounts.
The current account has also been affected. Pakistan recorded a cumulative deficit of $812 million in the first five months of FY26, compared with a $503 million surplus during the same period last year. Analysts say both trade and current account trends point to mounting economic challenges.
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Officials and experts warn that reversing the deficit will require boosting exports and curbing non-essential imports. They emphasise policy reforms and trade diversification as key to stabilising Pakistan’s external balances in the coming months.