Pakistan’s Trade Deficit Climbs to $2.75 Billion in July 2025
Pakistan’s trade deficit rose to $2.75 billion in July 2025, marking a substantial jump of more than 44 percent compared with the $1.90 billion recorded in the same month last year.
Compared with June 2025, when the deficit was $2.372 billion, the gap widened by around 16 percent, indicating a notable month-to-month increase.
Exports Maintain Upward Momentum
However, on the brighter side, export in July was of a value of 2.69 billion dollars which is a 16.9 percent increase compared to that of the previous year and an 8.9 percent increase as compared to June. Analysts attribute this growth to higher sales in sectors like textiles, agriculture, and value-added goods.
Imports Outpace Export Growth
Despite export gains, imports continued to grow at a faster pace, totaling $5.4 billion for the month. This represents a 29.2 percent year-on-year increase and a 12.4 percent rise compared with the previous month. The surge in incoming goods — particularly fuel, machinery, and industrial inputs — played a major role in widening the trade deficit.
Outlook for Coming Months
Economic experts warn that the growing trade gap could place additional pressure on foreign reserves and the Pakistani rupee. They stress the importance of policies aimed at boosting domestic production and reducing reliance on imported goods to stabilize the external balance.
