Pakistan’s trade deficit surged to $3.4 billion in April 2025, as a drop in exports and a sharp rise in imports deepened concerns over the country’s external finances.
Despite a record $4.1 billion in remittances last month, experts warn that the overall current account could slip back into deficit if the trend continues.
According to the Pakistan Bureau of Statistics, April saw exports decline to $2.14 billion, down 19.05% from March and nearly 9% lower year-on-year, while imports jumped to $5.53 billion, a monthly increase of 14.52%.
This led to the highest monthly trade gap since August 2022, with a $1.2 billion increase over the previous month alone.
In rupee terms, exports stood at Rs601.4 billion while imports crossed Rs1.55 trillion, creating a deficit of Rs952 billion.
The 10-month trade deficit (July to April) reached $21.35 billion, up 8.8% from the same period last fiscal year. Total exports for this period were $26.86 billion (up 6.25%), while imports climbed to $48.21 billion (up 7.37%).
“While detailed breakdowns are still awaited, the surge in imports is broadly attributed to a revival in domestic demand across multiple sectors of the economy,” said Sana Tawfiq, Head of Research at Arif Habib Limited.
She linked the rise to increased petroleum consumption and higher automobile sales, likely triggered by recent monetary easing that boosted consumer activity.
Tawfiq noted that although the high level of remittances offers some support, the cushion might shrink if inflows fall in the coming months.
If import growth continues without an equivalent boost in exports or remittances, the current account could once again fall into deficit.
She emphasised the importance of tracking whether the rising imports are tied to productive investments like raw materials and machinery or driven by non-essential consumption, which could worsen the country’s financial vulnerabilities.