Pakistan’s trade deficit surged by 44.16% in July 2025, the first month of the current fiscal year. According to the Pakistan Bureau of Statistics, the deficit reached $2.752 billion. This marks a sharp increase both on a yearly and monthly basis. The growing gap between imports and exports raises concern among economists.
Exports showed some improvement during the month. They rose by 16.91% year-on-year and 8.88% compared to June 2025. Total exports stood at $2.697 billion in July. This increase offers some relief but not enough to offset the rise in imports. Experts say stronger export growth is needed to narrow the trade gap.
Imports grew more sharply than exports. They increased by 29.25% compared to July 2024 and 12.37% from June 2025. The total import bill reached $5.449 billion. This rising import trend continues to place pressure on the country’s external finances. Policymakers now face tough choices to manage this growing imbalance.
The monthly trade deficit also rose by 16.02% compared to the previous month. This consistent increase in trade deficit could affect Pakistan’s current account stability. Although the country posted a $2.1 billion current account surplus in FY25, this early trend in FY26 poses challenges. Rising imports, if unchecked, may reverse the recent gains.
Last year, Prime Minister Shehbaz Sharif had praised the current account surplus achievement. The surplus was seen as a positive sign of economic recovery. However, experts now stress the need for strict import controls and strong export strategies. Without urgent reforms, the country’s trade balance may worsen further.