Pakistan’s trade deficit widened by 56% in October 2025, driven by a surge in imports and a slight dip in exports, according to the latest data from the Pakistan Bureau of Statistics (PBS).
The report shows that the country’s trade deficit increased to $2.9 billion in October, compared to $1.86 billion recorded in the same month last year. This sharp rise underscores the growing pressure on Pakistan’s external accounts despite efforts to stabilize the economy through import controls and export incentives.
Exports in October stood at $2.6 billion, reflecting a minor decline compared to the previous month, while imports jumped to $5.5 billion, largely due to higher petroleum, machinery, and food imports. Analysts attribute this increase to the global rise in oil prices and seasonal demand ahead of the winter months.
Economists warn that the expanding deficit could pose challenges for Pakistan’s foreign exchange reserves and rupee stability, particularly as the government negotiates new financing arrangements with international lenders. They also emphasized the need to diversify exports and enhance domestic production capacity to reduce reliance on costly imports.
The Ministry of Commerce, however, expressed cautious optimism, stating that the overall trade performance for the first four months of FY2025–26 remains stable. It added that policy measures, including export promotion schemes and reduced import of luxury goods, will help narrow the gap in the coming months.
Experts suggest that Pakistan must focus on energy efficiency, value-added exports, and industrial competitiveness to achieve sustainable trade balance.
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