2 min read
Pakistan’s economy faces fresh pressure as the trade deficit widened sharply in August 2025, raising concerns over foreign exchange reserves and economic stability. The latest data from the Pakistan Bureau of Statistics (PBS) highlights a widening gap between declining exports and rising imports.
According to PBS, the trade deficit reached $2.9 billion in August 2025, showing a 30.1% year-on-year increase. Exports fell to $2.4 billion, reflecting a 12.5% decline YoY, while imports rose to $5.3 billion, recording a 6.4% increase YoY.
Despite this yearly surge, the deficit eased on a month-on-month basis, declining 9% from July’s $3.14 billion.
Trade Performance (August 2025 vs Previous Periods)
| Indicator | August 2025 | Change YoY | Change MoM |
| Exports | $2.4 bn | -12.5% | -10.0% |
| Imports | $5.3 bn | +6.4% | -9.3% |
| Trade Deficit | $2.9 bn | +30.1% | -9.0% |
Cumulative FY26 (July–August 2025)
| Indicator | 2MFY26 | 2MFY25 | Change |
| Exports | $5.1 bn | $5.06 bn | +0.6% |
| Imports | $11.12 bn | $9.73 bn | +14% |
| Trade Deficit | $6.0 bn | $4.66 bn | +29% |
The widening deficit underscores structural challenges in Pakistan’s external sector, where export growth remains weak while import demand continues to rise.
