Pakistan’s trade deficit widened sharply in December 2025 as imports surged while exports continued to weaken, official trade data shows. The growing gap highlights mounting pressure on the country’s external sector at a time when economic stability remains fragile. According to provisional merchandise trade statistics, Pakistan’s exports fell to $2.32 billion in December, marking a 4.3 percent decline from November and a steep 20 percent drop compared to December last year. The fall reflects ongoing challenges in global demand, rising production costs, and reduced competitiveness of local exporters. At the same time, imports jumped to $6.02 billion, rising 13.5 percent month-on-month and 2 percent year-on-year. This sharp increase pushed the monthly trade deficit to $3.71 billion, worsening by 28 percent from November and about 24 percent higher than December 2024. An official familiar with the data said, “The combination of rising import dependence and weak export growth is putting sustained pressure on Pakistan’s balance of payments. The broader picture shows deeper concerns. During July to December FY2025, exports declined 8.7 percent to $15.18 billion, while imports climbed 11.3 percent to $34.39 billion. This resulted in a six-month trade deficit of $19.2 billion, a massive 35 percent increase compared to the same period last year. Economists warn that without export-led growth, improved industrial productivity, and tighter import management, the trade gap could continue to strain foreign exchange reserves and economic recovery efforts.