Pakistan’s trade deficit expanded as exports declined by 17.35% in February 2025, according to the latest data released by the Pakistan Bureau of Statistics.

The country’s exports stood at $2.43 billion last month, compared to $2.95 billion in January 2025, marking a sharp month-on-month drop. However, imports also fell by 9.89% in February, totaling $4.73 billion.

Despite the decline in February, exports increased by 8.17% from July 2024 to January 2025, exceeding $22 billion in the seven-month period. Meanwhile, imports rose by 7.4% to $37.8 billion, resulting in a trade deficit of $15.78 billion.

Trade deficit trends & annual comparison

The trade deficit in February 2025 decreased by 0.35% compared to January, but overall, the deficit grew by 6.33% in the first seven months of the fiscal year.
Compared to February 2024, exports in February 2025 dropped by 5.57%, reflecting a decline in international demand and other economic challenges.

Also Read: Pakistan’s inflation drops to lowest in 9 years

Meanwhile, Pakistan’s inflation rate in February 2025 dropped by 0.83% to 1.52%, falling below government estimates of 2 to 3%, marking the lowest level in nine and a half years.

A Pakistan Bureau of Statistics report reveals that urban inflation stood at 1.8%, while rural inflation was 1.1%. From July 2024 to February 2025, the average inflation rate remained at 5.85%.

Prices of essential goods fluctuate

The report highlighted that prices of several essential commodities decreased, including:
✅ Tomatoes (-57%)
✅ Onions (-32%)
✅ Potatoes (-20%)
✅ Vegetables (-17%)
✅ Eggs (-14%)
✅ Daal channa and tea became cheap by 10%, gram flour 9%, wheat 3%, daal maash 2.82% and flour 2.23%. Chicken, lentils, fish, dairy products, fuel, transport, construction materials, electricity, stationery also became cheaper.