Pakistan’s trade deficit hits $4.07 billion in April, widest in 46 months as imports surge

By Staff Reporter

ISLAMABAD: Pakistan’s trade deficit climbed to $4.07 billion in April, the widest in 46 months, as a surge in imports more than offset a modest recovery in exports, according to data from the Pakistan Bureau of Statistics released on Tuesday.

The gap widened 3.8% from $3.92 billion a year earlier and jumped 43.5% from $2.84 billion in March, the PBS figures show. Imports rose 7.5% to $6.55 billion from $6.1 billion in April 2025, while exports increased 14% to $2.48 billion from $2.17 billion.

On a monthly basis, imports climbed 28.4%, outstripping a 9.5% gain in exports and driving the deficit higher. Merchandise exports posted their first increase in three months, rebounding after consecutive declines in February and March, yet the improvement proved insufficient to narrow the overall gap.

For the first 10 months of the 2025-26 fiscal year, the trade deficit expanded 20.3% to $31.98 billion from $26.59 billion in the same period a year earlier. Exports fell 6.3% to $25.21 billion from $26.89 billion, while imports rose 6.9% to $57.19 billion from $53.48 billion. The deterioration was driven by higher import volumes for energy and industrial inputs, which continued to outpace export earnings.

Export performance has been uneven throughout the fiscal year. After a 16.4% year-on-year gain in July, proceeds recorded negative growth in eight of the next nine months. They declined 20.4% in December, 14.5% in November, 4.5% in October, 3.9% in September and 12.5% in August. A 3.3% increase in January was followed by drops of 8.8% in February and 14.4% in March before the April rebound.

The government announced measures three months ago, including lower energy rates for exporters, in an effort to ease pressure on the trade balance. Those steps have yet to produce a sustained turnaround. Exporters have also faced higher shipping costs and supply-chain disruptions from the conflict in the Middle East, particularly rerouting around the Strait of Hormuz.

Analysts have noted that persistent import demand for energy and raw materials, combined with softer export growth, is keeping the external account under strain. In the full 2024-25 fiscal year, exports rose 4.7% to $32.11 billion from $30.68 billion the previous year, while the trade deficit widened 9% to $26.27 billion from $24.11 billion.