Pakistan’s trade deficit surges 33% YoY to $2.3bn in February 2025

Pakistan’s Balance of Trade

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Pakistan’s trade deficit significantly increased by over 33% to $2.3 billion in February 2025, as compared to the same month of the previous year, data released by the Pakistan Bureau of Statistics (PBS) showed on Monday.

The country’s trade balance, the gap between exports and imports, was recorded at a deficit of $1.72 billion in February 2024.

The trade deficit expanded year-on-year (YoY) in February 2025 on the back of an increase in the country’s imports along with a decrease recorded in exports.

Exports in February 2025 stood at $2.44 billion, down 5.6% against $2.58 billion recorded in February 2024.

Meanwhile, imports were recorded at $4.74 billion, up over 10% against $4.31 billion in the same period last year (SPLY).

Uptick in inflation, water stress for crops likely

On a month-on-month (MoM) basis, the trade deficit marginally lowered 0.35% in February 2025 against $2.31 billion in January 2025.

During the first eight months of the fiscal year 2024-25 (8MFY25), the country’s trade deficit increased over 6% to $15.78 billion from $14.84 billion recorded in SPLY.

Exports in 8MFY25 increased by 8.17% to $22.02 billion from $20.4 billion in SPLY.

Imports in 8MFY25 also rose by 7.4% to $37.8 billion from $35.2 billion recorded in 8MFY24.