ISLAMABAD: Pakistan’s trade deficit shrank significantly to $2.6 billion in May 2025 according to State Bank data released Tuesday.
Exports rose 17% year-on-year to $2.6 billion – the highest monthly growth this fiscal year. Simultaneously, imports fell 8% to $5.2 billion. This combination narrowed the trade gap by 23% compared to May 2024.
However, the 11-month outlook (July 2024-May 2025) remains concerning. The cumulative trade deficit widened by 11% to $24 billion despite May’s improvement.
The central bank attributed the positive monthly shift to stronger export performance and reduced import spending
