Overview
- Official PBS data show July–December exports at $15.184 billion, down 8.7% year on year, with imports up 11.28% to $34.388 billion, widening the gap to $19.204 billion.
- In December 2025, exports fell 20.4% to $2.317 billion while imports rose 2% to $6.022 billion, lifting the monthly deficit to about $3.7 billion and marking steep year-on-year and month-on-month increases.
- Trade liberalisation has so far coincided with shrinking shipments, diverging from expectations that reforms would lift exports more than imports.
- Exporters blame an effectively overvalued rupee and elevated energy tariffs, taxes, interest rates and financing costs for eroding competitiveness.
- The FBR instructed field offices to scrutinise at least 70 exporters’ tax returns after a tax regime change, drawing objections from business groups as the agency defended the reviews as routine compliance; analysts also flag potential central‑bank dollar purchases even as remittances help cushion pressures.