Pakistan’s trade gap widened significantly in July 2025, with the deficit clocking in at $2.75 billion—a rise of over 44% compared to $1.90 billion recorded in July last year.
On a monthly basis, the trade deficit also saw an increase of 16%, up from $2.372 billion in June 2025.
The rise in deficit came as imports surged to $5.4 billion, reflecting a 29.2% year-on-year jump and 12.4% increase from the previous month. In contrast, exports rose to $2.69 billion, showing a 16.9% annual growth and an 8.9% monthly gain.
While export figures show some positive momentum, the pace of import growth continues to outstrip export gains, putting additional pressure on Pakistan’s current account and foreign reserves.
Economists note that the ballooning trade deficit could undermine efforts to stabilize the economy, especially as the country navigates external financing commitments and aims to build sustainable export-led growth.