Moaaz Manzoor

Pakistan’s trade deficit widened sharply by 58.21 percent year-on-year to Rs904.23 billion ($3.208 billion) in October 2025,  as imports continued to surge while exports showed a slight decline, reports Wealth Pakistan quoting the provisional data released by the Pakistan Bureau of Statistics (PBS).

Exports in October stood at Rs800.972 billion ($2.849 billion), down 3.27 percent in rupee terms and 4.46 percent in dollar terms compared to Rs828.052 billion ($2.982 billion) recorded in October 2024. Imports, however, rose sharply by 21.84 percent in rupees and 20.18 percent in dollars to Rs1,705.205 billion ($6.057 billion) from Rs1,399.579 billion ($5.040 billion) a year earlier.

On a month-on-month basis, trade performance showed a mixed movement. Exports improved by 13.81 percent in rupee value and 14.01 percent in dollar value compared to September 2025, when they totaled Rs703.779 billion ($2.499 billion). Imports also increased, though at a slower pace, rising by 3.42 percent in rupees and 3.57 percent in dollars from Rs1,648.853 billion ($5.848 billion) recorded in September 2025. As a result, the monthly trade deficit narrowed slightly by 4.32 percent in rupee terms and 4.21 percent in dollar terms compared with the previous month.

During the first four months of the current fiscal year (July–October 2025), the total exports were recorded at Rs2,950.538 billion ($10.448 billion), marking a 2.59 percent decline in rupee value and a 4.04 percent fall in dollar terms compared to Rs3,028.942 billion ($10.888 billion) in the same period last year. Imports, meanwhile, posted a significant jump of 16.86 percent in rupees and 15.13 percent in dollars, reaching Rs6,508.234 billion ($23.030 billion) from Rs5,569.160 billion ($20.003 billion) a year earlier.

Consequently, the country’s cumulative trade deficit widened to Rs3,557.696 billion ($12.582 billion) during July–October FY25, reflecting an increase of 40.05 percent in rupees and 38.04 percent in dollars from Rs2,540.218 billion ($9.115 billion) in the corresponding period of the previous year. The data shows that while exports saw some monthly recovery in October, the strong rise in imports continued to weigh heavily on the external account, widening the trade gap.

The figures point to persistent pressure on the trade balance amid import-led recovery trends and exchange rate challenges. According to PBS, the primary data source was the Pakistan Single Window (PSW), while additional information from DRS and FBR, Islamabad for October is still awaited.

Credit: INP-WealthPk