Pakistan's trade deficit widened to $3.8bn in December 2025 as exports fell sharply and imports accelerated, highlighting persistent strain on the country's external balance. According to a report by Arif Habib Limited, exports during December stood at $2.3bn, representing a decline of 22.1% compared with December 2024. On a month-on-month basis, outbound shipments also dropped 6.3% from November 2025. In contrast, imports rose to $6.1bn during the month. This marked an increase of 3.5% year-on-year and a substantial 15.1% rise compared with November. The widening gap between shrinking export revenues and expanding import payments pushed the monthly trade deficit to $3.8bn. Cumulative figures point to a broader imbalance. During the first half of FY2026, the trade shortfall expanded by 35.5% year-on-year to $19.3bn, according to Pakistan Bureau of Statistics data. The December figures underscore continuing volatility in Pakistan's trade performance, with declining export earnings and rising imports contr ibuting to a deepening external deficit.