According to the latest data from the Pakistan Bureau of Statistics, Pakistan’s trade deficit widened in February 2025 as exports fell by 17.35% compared to January, dropping to $2.43 billion from $2.95 billion. Imports also declined by 9.89%, totaling $4.73 billion for the month. However, from July 2024 to January 2025, exports increased by 8.17% to over $22 billion, while imports grew by 7.4% to $37.8 billion, resulting in a trade deficit of $15.78 billion.
Read more: Pakistan’s Inflation Falls to a 9-Year Low
Although the deficit in February 2025 was slightly lower than in January by 0.35%, the overall deficit for the first seven months of the fiscal year increased by 6.33%. Compared to February 2024, exports in February 2025 decreased by 5.57%, reflecting a decline in international demand and other economic challenges.
In related economic news, Pakistan’s inflation rate in February 2025 dropped by 0.83% to 1.52%—the lowest level in nine and a half years and below government estimates of 2 to 3%. The report noted that urban inflation was 1.8% while rural inflation was 1.1%, and the average inflation rate from July 2024 to February 2025 was 5.85%.
The report also highlighted that the prices of several essential commodities declined significantly. For instance, tomatoes fell by 57%, onions by 32%, potatoes by 20%, vegetables by 17%, and eggs by 14%. Additionally, prices for daal channa and tea dropped by 10%, gram flour by 9%, wheat by 3%, daal maash by 2.82%, and flour by 2.23%. Other items such as chicken, lentils, fish, dairy products, fuel, transport, construction materials, electricity, and stationery also became cheaper.
