Pakistan’s trade deficit soared to $3.39 billion in April 2025 — the highest monthly gap in three years — reflecting a sharp imbalance driven by surging imports and a steep decline in exports, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The deficit widened by 55.2% on a month-on-month (MoM) basis, as imports climbed 14.52% to $5.53 billion, up from $4.82 billion in March. Meanwhile, exports dropped by 19.05% to $2.14 billion in April, compared to $2.64 billion in the preceding month.
On a year-on-year (YoY) basis, the trade deficit worsened by 35.79% compared to April 2024, when it stood at $2.49 billion. This came as exports fell by 8.93% from $2.35 billion, while imports grew by 14.09% over the same period, rising from $4.84 billion.
The monthly deficit level recorded in April marks the highest since the third quarter of 2022, raising renewed concerns over external sector stability and the pressure on foreign exchange reserves.
In cumulative terms, the trade deficit for the first ten months of FY2024-25 (10MFY25) rose by 8.81% year-on-year to $21.35 billion, up from $19.62 billion in 10MFY24. Exports during this period grew 6.25% to $26.85 billion, compared to $25.27 billion last year, while imports increased 7.37% to reach $48.21 billion, against $44.90 billion in the corresponding period of FY24.
Analysts believe the widening deficit could complicate macroeconomic management as the country approaches the FY26 budget and continues negotiations with the International Monetary Fund (IMF).
With inflation still elevated and monetary easing under debate, the deteriorating trade balance could weigh on the central bank’s decision-making in the upcoming Monetary Policy Committee meeting. The next tranche under the IMF program, expected to be approved on May 9, will also be closely watched for signals on how authorities plan to address external imbalances.
