Pakistan’s exports crossed $3 billion for the first time in January 2026, marking a historic trade milestone. Exports reached $3.1 billion during the month as import levels declined. Consequently, the monthly trade deficit narrowed by nearly 29 percent.
According to the Pakistan Bureau of Statistics, exports surged by 35 percent in January 2026. They also increased by 3.73 percent compared to January 2025. Meanwhile, imports fell by 5 percent to $5.8 billion, supporting external stability.
Read more: Imports boom exposes Pakistan’s weak export strategy
The lower import bill helped reduce the monthly trade deficit to $2.7 billion. This improvement reflects stronger export demand and better cost management. As a result, short-term trade indicators show encouraging momentum.
Advisor to the Finance Minister Khurram Shahzad welcomed the positive monthly performance. He said rising exports and falling imports signal gradual economic recovery. Moreover, he noted lower energy costs and interest rates could further support exporters.
Read more: Pakistan’s rice exports to China cross $62 million in 2025
However, cumulative data from July 2025 to January 2026 highlights persistent challenges. The trade deficit widened by 28 percent, exceeding $22 billion. Experts say structural reforms are needed to sustain exports and manage long-term import growth.