Pakistan’s trade deficit reached $2.75 billion in July 2025, marking a sharp increase of over 44 percent compared to the $1.90 billion deficit recorded in the same month last year. The rising Pakistan trade deficit is attributed to a significant jump in imports that outpaced export growth.
On a month-on-month basis, Pakistan’s trade deficit widened by 16 percent compared to June 2025, when the gap stood at $2.372 billion. This upward trend in the trade gap reflects rising external pressures on the country’s balance of payments.
Exports in July 2025 showed positive momentum, rising 16.9 percent year-on-year to reach $2.69 billion. Compared to the previous month, exports also grew by 8.9 percent, signaling an uptick in overseas demand for Pakistani goods.
However, the pace of import growth outstripped export gains. Imports in July 2025 surged 29.2 percent year-on-year, amounting to $5.4 billion. Month-on-month, imports increased by 12.4 percent, further widening the Pakistan trade deficit.
The substantial rise in imports, driven by higher demand for energy products, machinery, and raw materials, continues to exert pressure on the trade balance. Meanwhile, export growth remains positive but insufficient to offset the escalating import bill.
The expanding Pakistan trade deficit highlights the need for policy measures to boost exports and manage import dependency, especially amid global economic uncertainties.