Pakistan’s trade deficit widened sharply in the first seven months of the current fiscal year, rising by 28.22% to $22.04 billion, according to data released by the Pakistan Bureau of Statistics on Monday. During the same period last year, the deficit stood at $17.19 billion.
The increase was mainly driven by a rise in imports and a fall in exports. Exports during July–January FY26 declined by 7.1% to $18.20 billion, compared with $19.58 billion in the corresponding period of FY25. In contrast, imports grew by 9.42% to $40.23 billion, up from $36.77 billion last year.
However, January figures offered some relief. Exports rose to $3.06 billion in January 2026, showing a 3.73% increase compared to January 2025. Imports during the month eased slightly to $5.79 billion.
As a result, the trade deficit in January narrowed to $2.72 billion, down 6.61% year-on-year and 28.53% lower than December 2025, indicating modest short-term improvement.
