Pakistan’s exports fell sharply in the first five months of the current fiscal year, creating a bigger trade deficit and adding pressure on an already struggling economy. Fresh data from the Pakistan Bureau of Statistics (PBS) shows that both regional tensions and new trade barriers have played a major role in weakening the country’s trade performance.
According to the latest report, the trade deficit widened by more than 37% between July and November. The deficit increased by $4.19 billion compared to the same period last year, reaching over $15.46 billion. This rise was driven by falling export numbers and a noticeable surge in import volumes.
During the same period last fiscal year, Pakistan recorded a trade deficit of $11.27 billion, highlighting how much the situation has worsened.
The data shows that Pakistan’s exports dropped by $877 million during the July–November period. Total exports fell to $12.84 billion, marking a 6.39% decrease from the $13.72 billion recorded last year. Officials say regional tensions and strict trade restrictions have disrupted supply chains, with food exports suffering the most.
In contrast, imports rose sharply. The report notes that Pakistan imported goods worth $28.31 billion in the first five months, showing a 13.26% increase. This imbalance between falling exports and rising imports further widened the trade gap.
November 2025 proved to be one of the hardest months for trade. Pakistan’s exports dropped 15.80% from October levels, falling from $2.84 billion to $2.39 billion. This meant a loss of $450 million in just one month. Imports in November also fell by 13.70%, reaching $5.25 billion, but the monthly trade deficit still stood at $2.85 billion. On a year-on-year basis, exports were down 15.35% compared to November 2024.
Despite the drop in imports, the November trade deficit surged 33% compared to the same month last year. Economists say the numbers point to structural weaknesses in the export sector and increased external pressure due to the regional situation.
The PBS report concludes that regional tensions and new barriers remain the main reasons behind declining exports and a growing trade deficit. Officials warn that trade performance may continue to suffer if geopolitical conditions do not improve.
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Meanwhile, the Federal Board of Revenue abolished the Export Development Surcharge (EDS) after 34 years. A notification was issued to the State Bank of Pakistan, following instructions from the prime minister to support export growth. The surcharge was previously set at 0.25% of export value and generated around Rs5 to Rs6 billion annually. According to Zubair Motiwala, the Export Development Fund currently holds Rs50 billion.
