Islamabad, August 13: Pakistan’s trade deficit widened sharply by 44 percent in July, reaching USD 2.7 billion, as imports surged despite the country’s fragile economic condition, The Express Tribune reported.
The spike, confirmed by the Pakistan Bureau of Statistics (PBS), marks a steep jump from the same month last year. Officials attribute the rise to a combination of lower import duties — introduced to meet conditions from the International Monetary Fund (IMF) and World Bank — and businesses delaying shipments until the start of the new fiscal year to benefit from the tariff cuts.
Planning Minister Ahsan Iqbal sought to downplay concerns, describing the deficit as a “temporary dip” that could be offset by future export growth. Speaking at the launch of the government’s first monthly development report for fiscal year 2025–26, Iqbal said exporters might benefit from preferential US tariff rates, though entering global markets remains a challenge.
Exports in July stood at USD 2.7 billion, up 16.9 percent from last year, while remittances rose 7.4 percent to USD 3.2 billion. The government credits these gains to growing confidence among overseas Pakistanis. However, analysts remain cautious, noting that external accounts are still under pressure and foreign exchange reserves remain vulnerable.
The widening trade gap underscores Pakistan’s continued reliance on external financial institutions and raises fresh concerns about long-term economic stability.