Pakistan’s battered economy took another hit as exports plummeted 20.4% in December 2025, the fifth straight monthly decline amid a perfect storm of regional conflicts and structural flaws. This data from official sources underscores a trade apparatus on the brink.
Geopolitical flashpoints with India and Afghanistan have locked down borders, derailing trade flows and amplifying costs. Over-reliance on Chinese partnerships has turned expensive, with trade barriers compounding the pain.
Key figures show exports dipping to $2.32 billion from $2.91 billion year-ago, while imports grew 2% to $6.02 billion, inflating the monthly deficit 24% to $3.7 billion. These trends reveal entrenched challenges: narrow export baskets, competitiveness gaps, and marginal global chain roles.
Fiscal half-year stats (July-Dec 2025-26) confirm the malaise—exports down 8.7% at $15.18 billion, imports up 11.3% to $34.39 billion, deficit exploding 35% to $19.2 billion. Long-term patterns depict stagnant exports unable to counter import surges or rival regional economies.
Successive governments have survived on foreign assistance, remittances, and borrowings, concealing export deficiencies instead of curing them. Now, with deficits surging, these props falter under real economic duress.
The path ahead demands bold action: diversify offerings, boost productivity, and forge global links. Failure risks a vicious cycle of inflation, debt, and stagnation, threatening Pakistan’s fragile recovery hopes.