Pakistan’s trade deficit widened significantly in the first two months of the ongoing fiscal year 2025-26, crossing the $6 billion mark, driven by a surge in foreign imports ranging from essential food items to luxury goods.

Trade deficit expands by nearly 30%

According to fresh data released by the Pakistan Bureau of Statistics, the trade deficit increased by 29.63% in July-August 2025 compared to the same period last year. The deficit rose to $6.05 billion, up from $4.66 billion in July-August 2024.

Total imports during the first two months stood at $11 billion, reflecting a 14.53% increase from last year.

Rising food imports

The biggest jump was seen in the import of food items. Between July and August, food imports rose by $394.7 million, reaching $1.46 billion.

This included a 37% increases in imports of milk, butter, cream, dried fruits, spices, pulses, soybeans, and palm oil. Spending on palm oil alone stood at $640 million.

Surge in luxury goods, smartphones

Imports of luxury goods also witnessed dramatic growth. Smartphone imports more than doubled, reaching $300 million in just two months compared to $143.7 million during the same period last year.

Similarly, imports of cars, buses, and motorcycles also doubled, pushing the overall transport import bill to $625.8 million.

Machinery, textiles, chemicals see growth

Machinery imports climbed by 22.56%, totaling $1.7 billion, while imports in the textile sector increased by 7.49%, hitting $1 billion.

Agricultural equipment and chemical imports rose by 4.58%, amounting to $1.75 billion, while imports of metals such as iron, steel, and aluminum reached $1 billion.

Decline in petroleum, tea, sugar imports

Despite the overall import surge, some categories recorded a decline.

Imports of tea fell by 5.67%, while sugar imports dropped by 19.48%. Petroleum imports also declined by 4.65%, reaching $2.53 billion during July-August 2025.