Pakistan faces $2.9 Billion Trade deficit amid import pressure

Pakistan’s trade deficit rose to $2.9 billion in August 2025, showing a sharp 30.1% increase compared to the same month last year, according to fresh data from the Pakistan Bureau of Statistics (PBS).

Exports dropped to $2.4 billion, which is 12.5% lower than last year and 10% lower than July 2025. On the other hand, imports climbed to $5.3 billion, up 6.4% year-on-year, though they fell 9.3% month-on-month, giving some relief to the overall trade gap.

In the first two months of the fiscal year 2025-26 (July–August), the trade deficit reached $6.0 billion, a 29% jump compared to last year. The widening gap reflects weaker export earnings and a rising import bill, putting more pressure on Pakistan’s foreign exchange reserves and economic stability.

On a positive note, the trade deficit narrowed slightly every month, falling from $3.14 billion in July 2025 to $2.9 billion in August 2025, a 9% improvement.

Exports for the two months (July–August) showed a slight rise of 0.6%, increasing to $5.1 billion from $5.06 billion a year earlier. However, imports jumped by 14%, reaching $11.12 billion compared to $9.73 billion in the same period last year.

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