Pakistan’s trade deficit saw a significant increase of more than 33%, reaching $2.3 billion in February 2025, compared to the same month in the previous year, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
The trade balance, which reflects the difference between the country’s exports and imports, stood at a deficit of $1.72 billion in February 2024. The widening of the trade deficit in February 2025 was primarily driven by a rise in imports and a decline in exports.
Exports for February 2025 amounted to $2.44 billion, marking a decrease of 5.6% from $2.58 billion in February 2024. On the other hand, imports surged to $4.74 billion, reflecting an increase of over 10% compared to $4.31 billion during the same period last year.
Trade Deficit Slightly Reduced on a Monthly Basis
On a month-on-month (MoM) basis, the trade deficit saw a slight decrease of 0.35% in February 2025, down from $2.31 billion in January 2025.
Trade Deficit Expands Over 6% in First Eight Months of FY25
Looking at the broader picture for the fiscal year 2024-25, Pakistan’s trade deficit during the first eight months (8MFY25) expanded by more than 6%, rising to $15.78 billion from $14.84 billion in the same period of the previous fiscal year (SPLY).
Exports during this period rose by 8.17%, reaching $22.02 billion compared to $20.4 billion in 8MFY24. However, imports also increased, rising by 7.4% to $37.8 billion, up from $35.2 billion in the previous year.
The increase in imports, coupled with declining exports, reflects the ongoing challenges in Pakistan’s trade balance. These trends could further exacerbate the country’s economic pressures in the months ahead, with inflationary pressures and agricultural challenges, such as water stress for crops, adding to the complex economic environment.
