Pakistan’s trade deficit jumped to $2.75 billion in July 2025, marking a sharp 44% increase compared to the same month last year when the gap stood at $1.90 billion, according to official data.
On a month-on-month basis, the trade imbalance grew by 16%, rising from $2.372 billion in June 2025.
The surge was driven primarily by a steep rise in imports, which reached $5.4 billion, up 29.2% year-on-year and 12.4% higher than the previous month. Meanwhile, exports also showed growth, increasing by 16.9% year-on-year and 8.9% month-on-month to $2.69 billion.
The widening trade gap underscores ongoing challenges in balancing Pakistan’s external account, with import growth once again outpacing exports, despite government efforts to promote exports and manage import bills.
Analysts warn that if this trend continues, it could put further pressure on foreign exchange reserves and complicate economic recovery plans, especially amid ongoing negotiations with global lenders and financial institutions.
