Pakistan’s trade deficit widened sharply by 28.22 percent to $22.04 billion during the first seven months of the current fiscal year, according to data released by the Pakistan Bureau of Statistics on Monday.
The figures highlight growing pressure on the country’s external sector despite ongoing stabilisation efforts under the IMF programme.
During the same July–January period of the previous fiscal year, Pakistan had recorded a trade deficit of $17.19 billion.
The year-on-year increase reflects an imbalance caused by rising imports alongside a notable decline in export earnings during the review period.
Exports in the first seven months of FY26 stood at $18.20 billion, showing a decline of 7.1 percent compared to $19.58 billion in the corresponding period of FY25.
The fall in exports indicates challenges faced by key sectors amid global demand slowdown and domestic cost pressures.
In contrast, imports surged to $40.23 billion during 7MFY26, marking an increase of 9.42 percent from $36.77 billion last year.
Higher import volumes, particularly of energy and essential goods, significantly contributed to the widening trade gap.
On a monthly basis, some improvement was recorded as exports rose to $3.06 billion in January 2026, up 3.73 percent from January 2025.
Imports during the month eased slightly to $5.79 billion, offering temporary relief to the external balance.
As a result, Pakistan’s trade deficit for January 2026 narrowed to $2.72 billion, down 6.61 percent year-on-year and 28.53 percent month-on-month.
Despite short-term easing, cumulative fiscal-year data signals continued vulnerability in Pakistan’s trade position.
Also read: Pakistan Seeks BRICS Membership to Expand Trade Opportunities
