Pakistan’s trade deficit has surged to $6 billion in the first two months of the 2025-26 fiscal year, mainly due to a decline in textile exports. The drop in exports, particularly within key textile sub-sectors, contributed to a 29% increase in the trade deficit, according to data released by the Pakistan Bureau of Statistics (PBS).
In August 2025, Pakistan’s exports fell by 12.49% compared to the same month last year, and by 10.39% month-on-month. The decline in textile exports was particularly significant, with various sub-sectors showing negative growth.
Overall, exports for July and August amounted to $5.10 billion, marking a nominal increase of 0.65% from the previous year. However, imports surged by 14.53% to $11.12 billion, up from $9.73 billion during the same period last year, further deepening the trade imbalance.
Textile exports, which account for 63% of Pakistan’s total exports, have been hit hard. Knitwear exports dropped by 2.28% YoY and 13.58% MoM, while readymade garments fell by 8.26% YoY and 18.40% MoM.
Other textile products like bedwear and cotton cloth also showed significant declines, with rice exports plummeting by 39.40% YoY. However, cotton yarn exports rose by 16.88% YoY and cement exports grew by 73% YoY.
On the import side, petroleum crude imports fell by 15.04% YoY but saw a 22.12% increase MoM. Other major imports like palm oil and motor cars saw sharp increases, while imports of electrical machinery and iron and steel also rose significantly compared to last year.
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