Moaaz Manzoor

Pakistan’s trade deficit widened sharply in December 2025, rising by 28.16 percent on a month-on-month basis as a surge in imports outpaced a decline in exports, according to data released by the Pakistan Bureau of Statistics.

The trade deficit stood at Rs1,040,789 million ($3,705 million) in December 2025, compared with Rs812,121 million ($2,886 million) in November 2025. The widening gap reflects mounting pressure on the external account amid rising import demand and subdued export performance.

Exports during December were recorded at Rs649,608 million ($2,317 million), down 4.41 percent in rupee terms and 4.26 percent in dollar terms from Rs679,556 million ($2,420 million) in November 2025. The decline highlights persistent challenges faced by exporters, including weak global demand and domestic cost pressures.

In contrast, imports surged to Rs1,690,397 million ($6,022 million), posting a month-on-month increase of 13.32 percent in rupee terms and 13.49 percent in dollar terms, up from Rs1,491,677 million ($5,306 million) in the previous month. The sharp rise in imports was the primary factor behind the widening trade deficit.

On a year-on-year basis, the trade picture also deteriorated. Exports in December 2025 fell by 19.76 percent in rupee terms and 20.41 percent in dollar terms compared to Rs809,554 million ($2,911 million) in December 2024. Imports, however, increased by 2.94 percent in rupee terms and 2.00 percent in dollar terms to Rs1,690,397 million ($6,022 million), up from Rs1,642,039 million ($5,904 million) a year earlier.

As a result, the trade deficit expanded by 25.02 percent in rupee terms and 23.79 percent in dollar terms year-on-year, rising from Rs832,485 million ($2,993 million) in December 2024 to Rs1,040,789 million ($3,705 million) in December 2025.

On a cumulative basis, during the first six months of the current fiscal year (July–December 2025), exports declined by 7.48 percent in rupee terms and 8.70 percent in dollar terms to Rs4,279,280 million ($15,184 million), compared with Rs4,625,449 million ($16,631 million) in the same period last year.

Imports during the same period increased by 12.84 percent in rupee terms and 11.28 percent in dollar terms to Rs9,698,751 million ($34,388 million), up from Rs8,595,413 million ($30,902 million) a year earlier.

Consequently, the cumulative trade deficit widened significantly to Rs5,419,471 million ($19,204 million), marking a rise of 36.51 percent in rupee terms and 34.57 percent in dollar terms compared with Rs3,969,964 million ($14,271 million) in the corresponding period of the previous fiscal year.

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