By Qudsia Bano
Pakistan’s trade deficit widens sharply in September 2025 as imports climbed much faster than exports, according to updated figures from the Pakistan Bureau of Statistics (PBS).
The numbers show that despite government measures to support exports, the country continues to spend more on imports than it earns from selling goods abroad.
Pakistan Trade Deficit Rises Amid Faster Import Growth
Exports increased by 3.04 percent from August, reaching Rs703,997 million (US$2.5 billion) in September compared to Rs683,209 million (US$2.42 billion) a month earlier.
Imports, however, rose by 11.33 percent, totaling Rs1,664,582 million (US$5.9 billion) during the same period. This rapid growth in imports widened the trade gap to Rs960,585 million (US$3.4 billion) — an 18.3 percent increase from August.
Monthly and Yearly Trends Show Widening Trade Gap
On a yearly comparison, the situation looked even tougher. Exports dropped by 10.8 percent from September 2024, while imports went up 16.49 percent.
As a result, the trade deficit rose by more than 50 percent, reaching Rs960,585 million this September compared to Rs639,689 million in the same month last year.
First Quarter FY26 Data Reflects Ongoing Economic Pressure
For the first quarter of FY26 (July–September 2025), the data showed a continued strain on the external sector.
Exports for the three-month period stood at Rs2,149,784 million (US$7.6 billion) — a decline of 2.32 percent in rupee value and 3.88 percent in dollar value compared to the same quarter last year.
Imports Surge While Exports Continue to Slow
Imports during the same quarter increased by 15.57 percent in dollar terms, reaching Rs4,818,758 million (US$17.03 billion).
This pushed the overall trade deficit for the quarter up by 35.57 percent, totaling Rs2,668,974 million (US$9.43 billion), compared to Rs1,968,694 million (US$7.05 billion) recorded in the same period of FY25.
Economists Call for Stronger Export Policies
Economists explained that the widening gap reflects Pakistan’s ongoing struggle to balance trade despite a relatively stable rupee.
They noted that higher import bills and slow export growth could put more pressure on the country’s foreign exchange reserves in the coming months if the pattern continues.
The report also highlights the urgent need for stronger export policies and measures to reduce import dependence. Without addressing these challenges, experts warn, Pakistan’s external sector could face deeper problems ahead.
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