Trade Deficit expands 28% in December

January 02, 2026 (MLN): Pakistan’s trade deficit widened sharply by 28.38% month-on-month (MoM) to $3.705 billion in December 2025, compared to $2.886bn in November.

The increase was driven by a strong surge in imports alongside a decline in exports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

On a year-on-year (YoY) basis, the trade deficit expanded by 23.79% from $2.993bn in December 2024, as imports edged higher while exports recorded a notable contraction.

Monthly Performance:

Exports in December 2025 stood at $2.317bn, registering a 4.26% MoM decline compared to November, showing continued pressures on outbound trade.

Imports, however, jumped to $6.022bn, up 13.49% MoM, significantly outweighing the drop in exports and driving the wider monthly trade gap.

Yearly Performance:

The YoY comparison pointed to persistent weaknesses in Pakistan’s external trade position.

Exports fell 20.41% YoY from $2.911bn in December 2024, while imports increased by 2.0% YoY from $5.904bn, resulting in a higher trade deficit of $3.705bn.

Cumulative Trend (July – December FY26):

During the first six months of FY26, exports totaled $15.184bn, down 8.7% YoY, while imports rose 11.28% YoY to $34.388bn.

As a result, the cumulative trade deficit widened significantly to $19.204bn, marking a 34.57% increase compared to the same period last year.

Despite fluctuations on a monthly basis, the data emphasizes ongoing structural challenges for Pakistan’s trade sector.

Declining exports and rising import demand continue to exert pressure on the country’s balance of payments.

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