Trade deficit soars to $2.3bn in Feb as exports dip

ISLAMABAD: Pakistan’s trade deficit jumped 33.4 percent to $2.3 billion in February 2025, up from $1.72 billion in the same month last year, the Pakistan Bureau of Statistics reported Monday.

Exports declined by 5.57 percent to $2.44 billion against $2.58 billion in same month of the last year. Imports however surged 10 percent to $4.738 billion from $4.306 billion in February 2024.

Notably, on a month-over-month basis, exports down by 17.35 percent from $2.95 billion in January 2025. Imports, also declined by 9.9 percent from $5.26 billion in the previous month. In first eight months of the outgoing fiscal, total exports climbed 8.17 percent, reaching $22.02 billion, compared to $20.36 billion in the same period last year.

With four months remaining in the fiscal year, policymakers aim to sustain the upward trend. They expect to easily cross the exports of $33 billion mark by end of the fiscal in June.

Imports, during July-February 2024-25, rose by 7.4 percent to $37.8 billion from $35.2 billion. Despite the boost in exports, the trade deficit—meaning the gap between exports and imports—grew by 6.33 percent to $15.78 billion.

The dip in exports may affect the current account position, which has long been a source of economic vulnerability. Pakistan’s current account balance posted a deficit of $420 million in January 2025, as per the State Bank’s data.

This was the first time in four months that the current account turned red. It posted a surplus in each of the previous three months i.e. October, November and December 2024.

The Statistical Bureau also reported trade in services data. During the first seven months of FY2024-25 (July-Jan), services exports increased to $4.75 billion, a 6.16 percent year-on-year (YoY) growth compared to the $4.47 billion in the same period last year. Imports also increased by 9.15 percent to $6.678 billion.

The deficit was increased by 17.3 percent to $1.93 billion against $1.645 billion last year. In January 2025, services exports increased by 1.15 percent to $691.6 million against $681.3 million in January 2024. Likewise, imports also increased to $1.0 billion from $968.6 million in same month a year ago, showing 3.84 percent increase.