Pakistan’s trade deficit has widened by 9% in the fiscal year 2024-25, reaching $26.3 billion, according to fresh data released by the Pakistan Bureau of Statistics (PBS).

This marks a sharp increase from the $24.1 billion deficit recorded in FY 2023-24, underscoring ongoing challenges in managing the country’s import-export balance.

Despite a modest rise in exports—up 4.7% to $32.1 billion from $30.7 billion last year—the increase in imports outpaced gains. Imports surged 6.6% to $58.4 billion, up from $54.8 billion in FY24, contributing heavily to the ballooning Pakistan trade deficit.

Experts believe that for Pakistan to maintain a sustainable economic path, more needs to be done beyond short-term gains. “Sustainable double-digit export growth will require political and economic stability, energy reforms, and global competitiveness,” Topline Securities emphasised in its analysis.

June 2025 Trade Snapshot

On a positive note, the Pakistan trade deficit saw a slight improvement in June 2025. The deficit narrowed 3.4% year-on-year, coming in at $2.3 billion, compared to $2.4 billion in June 2024. The decline was driven by a sharper drop in imports than in exports.

Exports in June dipped slightly by 0.6%, standing at $2.54 billion, compared to $2.56 billion in the same month last year. Meanwhile, imports dropped 2% to $4.86 billion, down from $4.96 billion in June 2024.

On a month-on-month basis, the trade deficit showed more significant improvement, falling 9.5% from $2.57 billion in May 2025 to $2.3 billion in June.

While monthly figures offer some relief, the growing yearly gap highlights the need for long-term trade and economic reforms. Unless addressed, the widening trade imbalance could put additional pressure on Pakistan’s foreign exchange reserves and currency stability.