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Aftab Maken
Pakistan’s trade deficit widened by 38% during the first four months of the current fiscal year (July–October 2025–26), according to data released by the Pakistan Bureau of Statistics (PBS). The deficit rose to $12.58 billion, compared to $9.11 billion in the same period last year — an increase of $3.46 billion.
The report showed that exports fell by over 4%, reaching $10.44 billion, while imports surged by 15.13%, crossing the $23 billion mark. Analysts said the imbalance between shrinking exports and rising imports poses serious concerns for Pakistan’s external accounts.
However, on a month-on-month basis, there was a slight improvement. Exports in October 2025 increased by 14%, rising from $2.49 billion in September to $2.84 billion. As a result, the monthly trade deficit narrowed by 4.21%, standing at $3.20 billion for October.
The report added that imports rose by 3.57% in October compared with the previous month, exceeding $6 billion, while exports were down 4.46% compared with October 2024 — a decline attributed to weak global demand and higher input costs.
Trade experts note that Pakistan’s export sector continues to face challenges from high energy prices, currency fluctuations, and slowing global demand, while import growth — driven largely by fuel and machinery purchases — has increased pressure on foreign exchange reserves.
Economic analysts warn that without targeted policy support, such as export incentives, energy cost relief, and currency stability, the trade deficit could widen further by the end of the fiscal year, worsening the current account balance and adding strain to inflationary pressures.
