Pakistan’s trade performance fell sharply in the first five months of the current fiscal year, as new data shows a major drop in exports and a rise in imports. The Pakistan Bureau of Statistics says regional tensions and increasing trade barriers are the main factors behind the downturn.
According to the latest figures, Pakistan’s trade deficit widened by more than 37%, growing by $4.19 billion compared to the same period last year. Between July and November, the deficit crossed $15.46 billion. In the same months of the previous fiscal year, the deficit stood at $11.27 billion.
Exports continued to weaken, falling by $877 million during the July–November period. Total exports stood at $12.84 billion, which is 6.39% lower than last year’s $13.72 billion. Officials say regional restrictions and tensions disrupted trade flows, with food exports suffering the most.
Meanwhile, Pakistan’s import bill rose sharply. Imports grew 13.26% in the first five months, reaching $28.31 billion. This imbalance between falling exports and rising imports pushed the trade gap to one of its widest levels in recent years.
November 2025 was especially difficult. Exports dropped 15.80% compared to October, slipping from $2.84 billion to $2.39 billion — a loss of $450 million in a single month. Imports also fell 13.70% in November, settling at $5.25 billion, but the monthly trade deficit still reached $2.85 billion. On a year-on-year basis, November exports fell 15.35% from the same month in 2024. The November trade deficit jumped 33% compared to last year, highlighting ongoing weaknesses in Pakistan’s export base.
Economists warn that without stability in the region, Pakistan’s trade situation could worsen further in the coming months.
In a separate development, the Federal Board of Revenue officially abolished the Export Development Surcharge (EDS) after 34 years. The State Bank of Pakistan has received instructions not to deduct the surcharge from export earnings. The EDS, previously set at 0.25% of export value, generated Rs5–6 billion annually. Officials say the move is meant to support exporters and boost trade, with the Export Development Fund currently holding around Rs50 billion.
