Pakistan recorded a trade deficit of $2.9 billion in August 2025, reflecting a significant 30.1% year-on-year (YoY) increase, according to data released by the Pakistan Bureau of Statistics (PBS).
Exports for August 2025 stood at $2.4 billion, marking a sharp decline of 12.5% YoY and 10.0% month-on-month (MoM).
Meanwhile, imports rose to $5.3 billion, showing a 6.4% YoY increase. However, on a MoM basis, imports declined by 9.3%, offering some relief to the overall trade balance.
Cumulatively, during the first two months of FY26 (July–August 2025), the trade deficit surged by 29% YoY to $6.0 billion. This increase reflects a combination of declining export revenues and higher import bills, further straining Pakistan’s foreign exchange reserves and economic stability.
On a month-on-month (MoM) basis, the trade deficit narrowed by 9%, dropping to $2.9 billion in August 2025 from $3.14 billion in July 2025.
Cumulatively, exports during 2MFY26 showed a marginal increase of 0.6%, rising to $5.1 billion from $5.06 billion in the SPLY. However, imports during the same period surged by 14%, reaching $11.12 billion compared to $9.73 billion in 2MFY25.
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Ohhhhhh, is it a news. When a country does not have capacity to produce any thing, while every thing is imported from essentials to luxury items, then what will be the outcome. Even a class zero can tell us the outcome.