Pakistan’s trade deficit widens 46% year on year in September

A view of shipping containers at a warehouse yard near the port area in Karachi, Pakistan, on July 31, 2025. (REUTERS/File)
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Updated 03 October 2025
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Pakistan’s trade deficit widens 46% year on year in September

  • Trade deficit increased by $1.05 billion from $2.29 billion in the same month last year
  • Pakistan’s top imports included petroleum products, machinery, gas, steel and cotton

ISLAMABAD: Pakistan’s trade deficit widened 46% in September to $3.34 billion as imports outpaced exports, the country’s statistics bureau said on Thursday, adding pressure on the country’s foreign exchange reserves.

The development comes as the cash-strapped country struggles to stabilize its foreign exchange reserves, amid looming debt repayments and limited avenues of fresh inflows. The total liquid reserves held by the country stood at $19.80 billion as of September 26, according to the State Bank of Pakistan.

The latest data from the Pakistan Bureau of Statistics (PBS) revealed that the trade deficit had increased by $1.05 billion, compared to $2.29 billion in the same month last year.

“Last month, the country’s imports surged 14% to $5.85 billion vs $5.13 billion last year,” the PBS said in its report. “Exports declined 12% to $2.5 billion vs $2.84 billion year earlier.”

The trade gap widened 33% to $9.37 billion in the third quarter of 2025, compared to $7.05 billion in the same period last year, according to the report. Pakistan’s exports fell 4% from $7.91 billion to $7.6 billion on a quarterly basis, while imports surged 13.5% from $14.9 billion to $16.9 billion.

The trade gap underscores structural weaknesses in Pakistan’s export base, dominated by low value-added textiles, while the country remains heavily reliant on costly fuel and machinery imports. The South Asian nation remains heavily reliant on foreign petroleum products, importing $17.9 billion in FY2024-25, almost equal to its textile export earnings.

Pakistan’s top exports this year included knitwear, readymade garments, bedwear, cotton, cloth, rice, towels, made-up articles, fruits, cotton yarn and basmati rice, according to the PBS. Items imported during the same period were petroleum products, crude oil, palm oil, electric machinery and apparatus, plastics, iron and steel, liquified natural gas, mobile phones and raw cotton.


Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

Updated 25 February 2026
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Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

  • Pakistan, Saudi Arabia signed strategic defense pact last year pledging aggression against one will be treated as attack on both
  • Deputy PM Ishaq Dar says enduring bonds with Islamic and Arab nations form vital pillar of Pakistan’s foreign policy 

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Wednesday that Pakistan’s defense pact with Saudi Arabia elevated its brotherly ties with the Kingdom to “new heights,” stressing that close ties with Arab and Islamic nations form a key pillar of Islamabad’s foreign policy. 

Pakistan and Saudi Arabia signed a Strategic Mutual Defense Agreement on Sept. 17 last year, pledging that aggression against one country would be treated as an attack on both, enhancing joint deterrence and formalizing decades of military and security cooperation.

Both nations agreed in October 2025 to launch an economic cooperation framework to strengthen trade and investment ties. 

“In the Middle East, our landmark Strategic Mutual Defense Agreement with Saudi Arabia has elevated our brotherly ties to new heights,” Dar said while speaking at the Pakistan Governance Forum 2026 event in Islamabad. 

The Pakistani deputy prime minister was speaking on the topic “Navigating International Relations Amidst Changing Geo-Politics.”

Dar noted that Pakistan has reinforced partnerships with other Middle Eastern nations such as the UAE, Qatar, Jordan, Oman, Egypt and Bahrain. He said these partnerships have yielded “concrete agreements” in investment, agriculture, infrastructure, and energy sectors. 

“Our enduring bonds with Islamic and Arab nations form a vital pillar of our foreign policy, and we will continue to expand our partnerships across Asia, Latin America, and Africa,” he said. 

Dar pointed out that the presidents of Kazakhstan, Uzbekistan and Kyrgyzstan have undertaken visits to Pakistan in recent months, reflecting Central Asian nations’ desire to boost cooperation with Islamabad.

On South Asia, the Pakistani deputy PM said Pakistan has successfully transformed its fraternal ties with Bangladesh into “a substantive partnership.”

“Similarly, the trilateral mechanism involving China, Pakistan, and Bangladesh has been launched with a view to expanding and deepening regional cooperation and synergy,” the Pakistani minister said. 

He said Islamabad has strengthened its “all-weather” partnership with China via the second phase of the multi-billion-dollar China-Pakistan Economic Corridor agreement and “unwavering support” from both sides for each other’s core interests. 

Dar said Pakistan had also reinvigorated its partnership with the US, advancing cooperation in trade, technology, investment, and regional stability. 

“This calibrated approach has enhanced our ability to navigate complexity with skill and confidence, ensuring that our national interests are served without compromising our core foreign policy principles,” he said.