Pakistan’s Trade Deficit Expands 56% Year-on-Year to $3.2 Billion in October

Pakistan’s trade deficit widened sharply by 56% year-on-year (YoY) in October 2025, reaching $3.2 billion, according to provisional data released by the Pakistan Bureau of Statistics (PBS). The increase was driven by a significant surge in imports, which crossed the $6 billion mark for the first time in nearly three years.

Despite the yearly rise, the deficit showed a 4% month-on-month (MoM) decline, suggesting slight improvement in trade management compared to September. Exports, meanwhile, fell 4% YoY but increased 14% MoM, amounting to $2.84 billion in October.

Analysts attribute the widening gap to the resumption of machinery and energy imports as economic activity picked up.

“Higher import volumes indicate industrial recovery but also pose risks to external stability if not matched by stronger export growth,” a trade expert commented.

During the first four months of FY2025–26 (4MFY26), Pakistan’s cumulative trade deficit rose 38% YoY, standing at $12.58 billion, highlighting persistent pressure on the current account despite currency stability.