Islamabad: Pakistan’s trade deficit narrowed by 9.47 percent in June 2025 compared to the previous month, as imports declined at a faster pace than exports. According to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday, July 2, 2025, the trade deficit stood at US2.32billioninJune,downfromUS2.57 billion recorded in May.
Exports in June fell 4.79 percent month-on-month to US2.54billion,whileimportsdroppedmoresharplyby7.08percenttoUS4.87 billion. On a year-on-year basis, exports in June saw a marginal decline of 0.59 percent, and imports also fell by 1.97 percent year-on-year. As a result, the trade deficit in June 2025 narrowed by 3.45 percent year-on-year.
Despite the monthly improvement, the overall trade picture for the full fiscal year from July 2024 to June 2025 shows a widening deficit. Exports for the fiscal year reached US32.11billion,markinga4.67percentincreasecomparedtothepreviousyear.However,thisriseinexportswasoutpacedbya6.57percentincreaseinimports,whichtotaledUS58.38 billion for the year. Consequently, the annual trade deficit widened to US26.3billion,comparedtoUS24.1 billion in fiscal year 2023-24.
Analysts note that while the export increase is positive, sustainable double-digit export growth is unlikely without energy cost reforms, political stability, and improved global competitiveness. The increasing import bill has put further strain on Pakistan’s foreign exchange reserves and the current account.
