Trade deficit rises by 16pc to $2.75bn in July25

ISLAMABAD (Mudassir Ali Rana) – Pakistan's trade deficit rose by 16% in July 2025, reaching a two-and-a-half-year high of $2.75 billion.

According to a report by the Bureau of Statistics, the last time such a high trade deficit was recorded was in December 2022, at $2.84 billion. Compared to June 2025, the trade deficit increased by 16% in July, and compared to July of the previous fiscal year, it surged by 44%.

Official figures show that imports reached $5.44 billion, the highest level in the past three years, while exports amounted to $2.69 billion, marking an 8% increase from the previous month.

However, since imports grew more than exports, the trade deficit widened.

According to the budget documents, the trade deficit increased by $850 million in just one month — from June to July. For the current fiscal year, the trade deficit is projected to reach $29.92 billion.

The government’s budget documents state that under the “Uraan Plan,” the government has set an export target of $60 billion over five years. For the current fiscal year, the export growth target has been set at just $2.5 billion, whereas to reach the $60 billion mark, exports need to increase by $5.5 billion annually.