ISLAMABAD: Pakistan’s trade deficit ballooned nearly 46% in September 2025 to $3.34 billion, official data showed, as imports surged and exports shrank, increasing pressure on the country’s fragile external sector and threatening currency stability.
The deficit, up from $2.29 billion in September last year, was fuelled by a 14% jump in imports to $5.85 billion, while exports slid 11.7% to $2.5 billion, according to the Pakistan Bureau of Statistics (PBS).
Compared with August 2025, the gap widened 16.3%. For the July–September quarter of the ongoing fiscal year, the trade gap swelled 32.9% year-on-year to $9.37 billion.
Imports during the period climbed 13.5% to $16.97 billion, while exports fell 3.8% to $7.6 billion. Economists warn the widening deficit could strain foreign reserves, fuel rupee volatility, and complicate debt repayments at a time when Pakistan is already dependent on external financing.
PBS data also showed the services trade deficit rising 21.9% in August 2025, reaching $437 million against $358 million a year earlier. While services exports rose 8.4% to $672 million, imports grew faster at 13.4% to $1.11 billion.
In the last fiscal year (July-June FY25), however, the services trade deficit narrowed 15.8% to $2.62 billion compared with $3.1 billion in FY24, as exports of services improved 9.2% to $8.4 billion while imports rose modestly by 2% to $11 billion.
Independent economists say the ballooning goods trade gap, paired with renewed services import demand, underscores Pakistan’s structural export weakness.
Without aggressive steps to boost industrial competitiveness and diversify exports, the deficit could derail stabilisation gains made under the International Monetary Fund (IMF) programme.
Strengthening regional trade links, incentivising high-value exports, and curbing non-essential imports are seen as urgent measures to ease external sector stress.
Dr Khaqan Najeeb, former adviser to Ministry of Finance, said Pakistan,s export model remains heavily concentrated in agriculture and textiles, which together account for the bulk of our $30–31 billion in annual exports.
This narrow base leaves the country exposed to price swings, limited demand, and little room for innovation.
Dr Khaqan felt to truly unlock export potential, we need to move beyond low-complexity, commodity-driven growth by strengthening the ecosystem that underpins exports — from affordable and reliable energy to smoother logistics, easier market access, frictionless transactions, wider access to finance, and a skilled workforce aligned with global standards.
At the same time, diversification into higher-value and knowledge-intensive sectors such as technical textiles, processed foods, branded agro-products, light engineering, and IT/BPO is critical.
