Pakistan’s Trade Deficit Widens to $2.75 Billion in July 2025
Pakistan’s trade deficit rose significantly in July 2025, reaching $2.75 billion, according to official data. This marks a 44% increase compared to the deficit of $1.90 billion recorded in the same month last year.
On a month-on-month basis, the trade deficit also expanded by 16%, rising from $2.37 billion in June 2025.
Export Growth Shows Positive Momentum
Pakistan’s exports showed encouraging growth, increasing by 16.9% year-on-year to $2.69 billion in July 2025. Compared to the previous month, exports were up 8.9%, reflecting a consistent upward trend.
Imports Continue to Surge
However, the rise in exports was outpaced by a sharper increase in imports, which climbed to $5.4 billion in July. This represents a 29.2% year-on-year increase and a 12.4% rise compared to June 2025.
Outlook
The widening trade gap highlights ongoing challenges in balancing the country’s external accounts. While export growth is a positive sign, the faster pace of import growth remains a concern for policymakers aiming to stabilize the current account and strengthen foreign exchange reserves.
