By Digital Spartans 
Pakistan’s trade deficit widened significantly during the first five months of the current fiscal year, crossing $15.46 billion amid rising imports and falling exports, according to data released by the Federal Bureau of Statistics. The imbalance reflects persistent pressure on external accounts at a time when the economy is undergoing structural reforms and remains sensitive to global demand trends.
From July to November 2025, the trade deficit rose 37.17% year-on-year, reaching $15.469 billion compared to the same period last year. The increase has been driven primarily by a sharp rise in imports, which climbed 13.26% during the five-month period to $28.313 billion. Higher import payments for energy, raw materials, and essential commodities continue to strain foreign exchange reserves, despite policy measures aimed at stabilizing the external sector.
Exports, meanwhile, recorded a significant decline. Overall export earnings fell 6.39% in the July–November window, dropping to $12.84 billion. The sluggish performance highlights persistent challenges faced by Pakistan’s key export sectors, including textiles, value-added manufacturing, and agricultural products, which have been affected by global demand volatility, higher costs, and supply chain disruptions.
The trade statistics also show mixed trends for November. The monthly deficit stood at $2.855 billion. On a yearly basis, the November deficit increased by 32.79%, suggesting that external pressures have not eased. However, month-to-month data indicates relative improvement, with the November deficit down 11.86% compared to October. This indicates some moderation, partly due to lower import volumes and seasonal adjustments.
Import payments in November reached $5.253 billion, continuing the upward trend observed since the beginning of the fiscal year. On the other hand, export earnings in November dropped sharply to $2.39 billion, reflecting a 15.35% decline year-on-year and a 15.80% decline month-on-month.
Economists believe that unless export competitiveness improves, Pakistan will remain vulnerable to external shocks. Stronger incentives for industrial output, improved energy reliability, and access to international markets are seen as critical to reversing the current trend. Policymakers are also being urged to balance essential imports against resource constraints to prevent further pressure on the currency and reserves.
With global demand expected to remain mixed, Pakistan’s external sector outlook hinges on stabilizing exports while managing import-driven inflation and supply needs. The coming months will test the country’s ability to navigate economic reform while avoiding unsustainable deficits.