ISLAMABAD: Pakistan’s trade deficit ballooned nearly 46 percent in September 2025 to $3.34 billion, official data showed Thursday, as imports surged and exports shrank, amplifying pressure on the country’s fragile external sector and threatening currency stability.
The deficit, up from $2.29 billion in September last year, was fueled by a 14 percent jump in imports to $5.85 billion, while exports slid 11.7 percent to $2.5 billion, according to the Pakistan Bureau of Statistics (PBS). Compared with August 2025, the gap widened 16.3 percent.
For the July–September quarter of the ongoing fiscal year, the trade gap swelled 32.9 percent year-on-year to $9.37 billion. Imports during the period climbed 13.5 percent to $16.97 billion, while exports fell 3.8 percent to $7.6 billion. Economists warn the widening deficit could strain foreign reserves, fuel rupee volatility, and complicate debt repayments at a time when Pakistan is already dependent on external financing.
PBS data also showed the services trade deficit rising 21.9 percent in August 2025, reaching $437 million against $358 million a year earlier. While services exports rose 8.4 percent to $672 million, imports grew faster at 13.4 percent to $1.11 billion.
In the last fiscal year (July-June FY25), however, the services trade deficit narrowed 15.8 percent to $2.62 billion compared with $3.1 billion in FY24, as exports of services improved 9.2 percent to $8.4 billion while imports rose modestly by 2 percent to $11 billion.
Independent economists say the ballooning goods trade gap, paired with renewed services import demand, underscores Pakistan’s structural export weakness. Without aggressive steps to boost industrial competitiveness and diversify exports, the deficit could derail stabilisation gains made under the IMF programme. Strengthening regional trade links, incentivising high-value exports, and curbing non-essential imports are seen as urgent measures to ease external sector stress.
Dr Khaqan Najeeb Former Advisor Ministry of Finance said Pakistan’s export model remains heavily concentrated in agriculture and textiles, which together account for the bulk of our $30–31 billion in annual exports. This narrow base leaves the country exposed to price swings, limited demand, and little room for innovation.
Dr Khaqan felt to truly unlock export potential, we need to move beyond low-complexity, commodity-driven growth by strengthening the ecosystem that underpins exports — from affordable and reliable energy to smoother logistics, easier market access, frictionless transactions, wider access to finance, and a skilled workforce aligned with global standards. At the same time, diversification into higher-value and knowledge-intensive sectors such as technical textiles, processed foods, branded agro-products, light engineering, and IT/BPO is critical. Only by upgrading both the structure and the complexity of our exports can Pakistan build resilience, raise incomes, and compete sustainably in global markets concluded Dr khaqan.