Qudsia Bano

Pakistan’s trade deficit widened sharply in September 2025 as imports grew at a much faster pace than exports, according to revised data released by the Pakistan Bureau of Statistics (PBS).

Exports rose 3.04 percent month-on-month to Rs703,997 million (US$2.5 billion) in September, compared to Rs683,209 million (US$2.42 billion) in August. However, imports surged 11.33 percent to Rs1,664,582 million (US$5.9 billion) during the same period, leading to a significant increase in the monthly trade gap.

The trade deficit widened to Rs960,585 million (US$3.4 billion) in September — up 18.3 percent from the previous month. On a year-on-year basis, exports declined 10.8 percent compared to September 2024, while imports jumped 16.49 percent, pushing the trade deficit up by more than 50 percent to Rs960,585 million in September 2025 from Rs639,689 million a year earlier.

The cumulative data for the first quarter of FY26 (July–September 2025) also pointed to persistent external pressures. Exports during the three-month period stood at Rs2,149,784 million (US$7.6 billion), down 2.32 percent in rupee terms and 3.88 percent in dollar terms from the same period last year.

Imports in the quarter, however, rose sharply by 15.57 percent in dollar terms, reaching Rs4,818,758 million (US$17.03 billion). As a result, the trade deficit for the first quarter expanded by 35.57 percent to Rs2,668,974 million (US$9.43 billion), compared to Rs1,968,694 million (US$7.05 billion) in July–September 2024.

Economists say the widening gap underscores ongoing challenges in Pakistan’s external sector despite a relatively stable rupee and government efforts to bolster export competitiveness. The rise in import payments, coupled with subdued export performance, could exert additional pressure on the country’s foreign exchange reserves in the coming months if the trend persists.

Credit: INP-WealthPk