Exports rise 17.6pc year-on-year, but stronger growth in imports pushes trade gap higher
ISLAMABAD: Pakistan’s trade deficit increased by more than 6 per cent year-on-year to $3.56 billion in September 2026, despite a significant increase in exports, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.
The trade gap stood at $3.35bn in September 2025.
Exports recorded strong growth during the month, rising 17.6pc to $2.94bn from $2.5bn in the corresponding month last year.
However, imports also increased substantially, reaching $6.49bn in September 2026, more than 11pc higher than the $5.85bn recorded during the same month of 2025. The increase in imports consequently outweighed the improvement in exports, resulting in a wider trade deficit.
Monthly Trade Gap Also Expands
On a month-on-month basis, Pakistan’s trade deficit increased by nearly 8pc.
The deficit had stood at $3.29bn in August 2026 before climbing to $3.56bn in September.
The figures indicate that although export earnings improved both annually and during the opening months of the fiscal year, rising imports continued to exert pressure on the country’s overall trade balance.
First-Quarter Deficit Reaches $10.79bn
The widening trend was also evident during the first quarter of the 2026-27 fiscal year.
Between July and September, Pakistan recorded a cumulative trade deficit of $10.79bn, representing an increase of more than 15pc from the $9.37bn deficit registered during the corresponding period of the previous fiscal year.
Exports during the first three months of FY27 increased by nearly 11pc to $8.42bn, compared with $7.59bn in the same period of FY26.
Imports, meanwhile, rose by more than 13pc, climbing from $16.97bn in the first quarter of FY26 to $19.22bn during July-September 2026.
The PBS figures therefore show that Pakistan recorded stronger export performance during September and the first quarter of FY27, but the simultaneous rise in imports resulted in a further expansion of the country’s merchandise trade deficit.
