ISLAMABAD — Pakistan’s trade deficit stood at $2.619 billion in May 2025, down 23.47% from the previous month, according to the latest figures released by the Pakistan Bureau of Statistics (PBS). The improvement was driven by a combination of rising exports and falling imports on a month-on-month basis.
Exports in May rose to $2.55 billion, reflecting a 17.43% increase compared to $2.17bn in April. Imports, on the other hand, declined by 7.58% to $5.17 billion from $5.59bn the month before, resulting in a lower trade gap on a sequential basis.
However, the year-on-year trend remains concerning. Compared to May 2024, exports dropped 10.07% from $2.83bn, while imports rose 5.23% from $4.91bn. This caused the trade deficit to worsen by 26.16% year-on-year, growing from $2.07bn in May 2024 to $2.61bn in May 2025.
The cumulative picture for the first eleven months of fiscal year 2024-25 reveals a widening trade gap. Exports during July–May stood at $29.44 billion, up 4.72% from $28.11bn in the same period last year. Imports totaled $53.45 billion, a 7.3% increase from $49.81bn in the corresponding period.
Consequently, the trade deficit for 11MFY25 reached $24 billion — a 10.63% increase compared to the $21.69bn recorded in the same period of FY24. The widening annual trade gap signals persistent pressure on the country’s external account despite monthly improvements, highlighting the need for sustained export growth and import rationalization.
