Trade Deficit narrows by 12% in November

December 2, 2025 (MLN): Pakistan’s trade deficit contracted 11.86% month-on-month (MoM) from $3.239 billion in October to $2.855 billion in November, primarily due to a significant reduction in imports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

However, on a year-on-year (YoY) basis, the deficit widened by 32.79%, up from $2.150 billion in November 2024, as exports fell and imports rose.

Monthly Performance:

Exports in November 2025 dropped to $2.398 billion, down 15.8% from $2.848 billion in October, reflecting ongoing challenges such as high energy costs and supply chain disruptions.

Imports fell by 13.7% to $5.253 billion from $6.087 billion in October, providing temporary relief to foreign exchange reserves.

Yearly Performance:

The YoY comparison highlighted a troubling trend for Pakistan’s external sector.

Exports declined 15.35% from $2.833 billion in November 2024, while imports increased 5.42% from $4.983 billion, resulting in a sharply widened trade deficit of $2.855 billion.

Cumulative Trend (July – November FY26):

From July to November 2025, exports totaled $12.844 billion, down 6.39% YoY, while imports surged 13.26% to $28.313 billion.

This pushed the cumulative trade deficit for the period to $15.469 billion, up 37.17% from the same period last year.

While monthly import compression provided short-term relief, Pakistan continues to face persistent structural challenges in its trade sector, with declining exports and rising imports exerting pressure on the country’s balance of payments.

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