Pakistan’s trade deficit widened to $2.75 billion in July 2025, marking a 16.02% increase from June 2025, as per data released by the Pakistan Bureau of Statistics (PBS).

Exports in July rose 8.88% month-on-month to $2.69 billion, compared to $2.47 billion in June. However, this increase was outpaced by a sharp 12.37% surge in imports, which rose to $5.45 billion from $4.85 billion in the prior month.

On a year-on-year (YoY) basis, exports showed a modest gain of 16.91%, up from $2.31 billion in July 2024. Imports, however, posted a much stronger YoY jump of 29.25%, rising from $4.22 billion in July last year.

The widening deficit is largely attributed to the relaxation of earlier policy restrictions and a modest economic recovery, which have led to the clearing of previously delayed import orders.

Last fiscal year, Pakistan saw a steep decline in imports—especially in machinery, petroleum products, and consumer goods—due to import curbs, high inflation, and subdued demand. With improved external stability and easing of controls, these suppressed imports have started to flow in again, putting renewed pressure on the trade balance.