Pakistan’s trade deficit ballooned to US$3.3 billion in September 2025, marking a sharp 46% increase year-on-year (YoY) and a 16% rise compared to August, according to data released by the Pakistan Bureau of Statistics (PBS).
The widening gap was driven by a double blow: a significant drop in exports and a strong surge in imports.
Exports in September fell 12% YoY to US$2.5 billion, despite a 4% month-on-month (MoM) uptick. Compared to the same month last year, the country’s exporters shipped out US$332 million less in goods and services.
On the other hand, imports surged 14% YoY and 11% MoM, reaching US$5.8 billion in September. The monthly import figure was up by US$517 million compared to August 2025.
As a result, the trade deficit for the first quarter of FY26 (July-September 2025) has swelled to US$9.4 billion, up 33% from US$7.0 billion in the same period last year.
This growing gap between exports and imports is a cause for concern, as it puts additional pressure on Pakistan’s foreign exchange reserves and complicates efforts to stabilize the economy.