ISLAMABAD: Pakistan’s exports declined by 12.5% in August 2025, raising concerns about weak global demand and the country’s falling competitiveness in international markets.

According to the Pakistan Bureau of Statistics (PBS), exports fell to $2.42 billion in August from $2.76 billion last year. On a month-to-month basis, export proceeds also dropped 9.98%.

This is the fourth decline in the past five months. July showed slight growth of 16.91%, but it was not enough to change the negative trend.

In July-August FY26, exports reached $5.11 billion, just 0.65% higher than $5.07 billion in the same period last year.

Earlier months also recorded losses: June exports fell 0.59%, May dropped 10.07%, and April decreased 7.36%. Only March showed a slight 3.08% increase.

In FY25, Pakistan’s total exports stood at $32.11 billion, up 4.67% from $30.68 billion in FY24. However, the growth momentum slowed sharply after October.

Experts highlight that global apparel buyers are shifting away from Bangladesh and China. This creates an opportunity for Pakistan’s textile and garment exports. But structural issues, high energy costs, and weak policies are preventing Pakistan from capturing this market share.

Imports and Trade Deficit

Imports increased by 6.42% year-on-year in August, rising to $5.28 billion from $4.96 billion. On a monthly basis, imports fell 9.35%.

In July-August FY26, imports jumped 14.23% to $11.2 billion compared to $9.73 billion last year.

As a result, the trade deficit widened 30.13% in August to $2.86 billion from $2.21 billion. In the first two months of FY26, the deficit rose to $6.02 billion, compared to $4.66 billion last year.

In FY25, the annual trade deficit stood at $26.27 billion, up 9% from $24.11 billion in FY24. Rising imports and declining exports remain a key challenge for Pakistan’s economy.