Pakistan’s trade deficit grew sharply in November 2025, reflecting a challenging period for the country’s external sector as both global and domestic conditions continue to influence trade flows. According to figures released by the Pakistan Bureau of Statistics (PBS), the trade deficit expanded by nearly 33 percent year-on-year, reaching $2.86 billion compared to $2.15 billion in November 2024. The widening gap was largely driven by a notable decline in export earnings along with an increase in import payments, both of which contributed to the monthly imbalance.
Exports for November 2025 fell by 15.4 percent on an annual basis, dropping to $2.39 billion from $2.83 billion recorded in the same month a year earlier. The decline reflects the prolonged pressure faced by export-oriented sectors due to international market adjustments, supply chain challenges, and weakening demand in several of Pakistan’s key export destinations. The decrease also indicates continued constraints within domestic production dynamics, especially in industries reliant on imported raw materials and energy inputs.
Contrasting this downward export trend, imports rose by over 5 percent year-on-year. Total imports increased to $5.25 billion in November 2025, compared to $4.98 billion in the corresponding month of the previous year. This rise was influenced by higher demand for essential goods, industrial inputs, and petroleum products, which continue to place pressure on the country’s foreign exchange reserves. The increase in imports further amplified the monthly trade deficit, even as some sectors attempted to adjust their procurement patterns in response to global price movements.
On a month-on-month basis, the November 2025 data offered a slightly different perspective, with the trade deficit showing an improvement compared to the previous month. The deficit contracted by nearly 12 percent compared to October 2025, when it stood at $3.24 billion. Both exports and imports experienced a reduction on a monthly basis, leading to a smaller gap, though the overall trend for the year remains upward. Market observers note that monthly fluctuations may continue as global commodity markets, shipping conditions, and regional demand patterns evolve.
The broader picture for the fiscal year further highlights the growing pressure on Pakistan’s trade position. During the first five months of FY2025-26 (5MFY26), the trade deficit increased by 37 percent, reaching $15.47 billion. In the same period of the previous fiscal year, the deficit was reported at $11.28 billion. Exports for the five-month period fell by over 6 percent, declining to $12.84 billion compared to $13.72 billion in 5MFY25. Imports, meanwhile, rose significantly by 13 percent, reaching $28.3 billion, up from $25 billion last year.
Adding to the external sector challenges, Pakistan’s current account deficit also expanded notably during the first four months of FY26. The deficit rose by 256 percent, climbing to $733 million between July and October, compared to $206 million in the corresponding period of the previous year. This increase of $527 million reflects intensifying pressure on the country’s balance of payments and underscores the importance of stabilizing both trade and financial flows in the months ahead.
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