ISLAMABAD: Pakistan’s trade deficit widened sharply to US$3.3 billion in September 2025, a 46% year-on-year (YoY) increase and 16% higher than the previous month, according to data released by the Pakistan Bureau of Statistics (PBS).
The ballooning deficit was fueled by a double blow: declining exports and surging imports.
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- Exports: Fell 12% YoY to US$2.5 billion, down by US$332 million compared to September 2024. On a month-on-month (MoM) basis, however, exports showed a modest 4% improvement.
- Imports: Rose 14% YoY and 11% MoM, climbing to US$5.8 billion in September — an increase of US$517 million compared to August 2025.
As a result, Pakistan’s trade deficit for the first quarter of FY26 (July–September 2025) reached US$9.4 billion, up 33% from US$7.0 billion during the same period last year.
Economists warn that the widening gap between exports and imports will place further strain on Pakistan’s foreign exchange reserves and complicate the government’s efforts to stabilize the economy amid rising external debt obligations.
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