Pakistan’s trade deficit jumps to $3.3bn in a major rise

Pakistan’s trade deficit jumped nearly 46% in September 2025 to $3.34 billion, as rising imports and falling exports put more pressure on the fragile economy and currency.

According to the Pakistan Bureau of Statistics (PBS), the gap increased to $3.35 billion, compared with $2.29 billion in the same month last year. Imports jumped 14% to $5.85 billion, while exports dropped 11.7% to $2.5 billion. On a monthly basis, the deficit grew 16.3% compared with August 2025. For the July–September quarter, the trade gap swelled 32.9% year-on-year to $9.37 billion. Imports rose 13.5% to $16.97 billion during the period, while exports slipped 3.8% to $7.6 billion. Economists warn that this growing imbalance could put pressure on foreign exchange reserves, fuel rupee instability, and complicate debt repayments, especially as Pakistan remains dependent on external financing.

PBS data also showed the services trade deficit expanding 21.9% in August, reaching $437 million compared with $358 million a year earlier. Although services exports increased 8.4% to $672 million, imports grew faster at 13.4% to $1.11 billion. For the full fiscal year July–June FY25, however, the services trade deficit narrowed 15.8% to $2.62 billion, supported by a 9.2% rise in services exports to $8.4 billion, while imports increased modestly by 2% to $11 billion.

Economists stress that Pakistan’s reliance on agriculture and textiles, which make up most of its $30–31 billion annual exports, leaves the country vulnerable. Experts recommend diversifying into high-value sectors such as technical textiles, processed foods, IT, branded agro-products, and light engineering. They add that affordable energy, efficient logistics, wider access to finance, and a skilled workforce are key to building resilience and competing in global markets.