Pakistan’s Economic Outlook: Foreign Reserves Stable, Exports Rise, but Trade Deficit Widens
ISLAMABAD – Pakistan’s economy is showing signs of stability, but challenges remain as the country grapples with a growing trade deficit, according to the latest official updates.
Speaking at an event in Islamabad on Thursday, the Minister of State for Finance revealed that the State Bank of Pakistan is currently holding $15 billion in foreign exchange reserves, while commercial banks have an additional $5.5 billion.
The minister said Pakistan is making steady progress toward macroeconomic stability, citing falling inflation and a lower policy rate as signs of improvement. “We’re now focused on steering the country toward sustainable and inclusive economic growth,” he said. He added that the government is actively working on tariff reforms to strengthen exports.
He also emphasized ongoing efforts to digitize the economy and implement key reforms within the Federal Board of Revenue (FBR) to enhance tax collection and improve fiscal health.
However, recent figures released by the Pakistan Bureau of Statistics (PBS) paint a mixed picture. While exports increased significantly in July 2025, the country’s trade deficit also widened sharply.
According to PBS data:
Exports rose by 16.91% in July 2025, reaching $2.697 billion, compared to $2.307 billion in July last year.
Imports surged by 29.25%, totaling $5.449 billion, up from $4.216 billion in July 2024.
As a result, the trade deficit jumped by 44.16%, from $1.909 billion to $2.752 billion year-on-year.
On a month-on-month basis:
Exports grew by 8.88% from $2.477 billion in June 2025 to $2.697 billion in July.
Imports also rose 12.37%, from $4.849 billion in June to $5.449 billion in July.
The figures underscore the delicate balance Pakistan must maintain—boosting exports and revenues while managing growing import costs and a widening trade gap.
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