Pakistan’s trade deficit widened by 17.5 percent during the first eleven months of fiscal year 2025-26, reflecting continued pressure on the country’s external sector as exports declined while imports increased.
Read More: Pakistan trade deficit reaches $34.76 billion
According to data released by the Pakistan Bureau of Statistics, the goods trade deficit reached $34.76 billion during July-May FY26, compared to the corresponding period of the previous fiscal year. The widening gap highlights the country’s ongoing dependence on imported goods, machinery and raw materials.
The statistics showed that imports increased by 5.94 percent to $62.66 billion during the period under review. Meanwhile, exports fell by 5.6 percent to $27.9 billion, down from $29.56 billion recorded a year earlier. The decline in exports has added to concerns about the country’s ability to improve its external balance and strengthen foreign exchange earnings.
Despite the overall deterioration, monthly figures for May indicated some improvement. The trade deficit for the month narrowed by 13.7 percent year-on-year to $2.58 billion. Exports rose modestly by 1.26 percent to $2.71 billion, while imports declined by 6.6 percent to $5.29 billion, suggesting a slight easing in import demand.
The services sector provided some positive momentum during the fiscal year. The services trade deficit narrowed by 17.4 percent to $2.04 billion during July-April FY26. Services exports increased by 17.7 percent to $8.3 billion, significantly outpacing the 8.6 percent growth in services imports.
In April alone, the services trade gap fell sharply to $26.1 million from $163 million in the same month last year. The improvement was driven by a 21.7 percent increase in services exports, which reached $915 million, alongside a 2.8 percent decline in imports.
Read More: Trade deficit rises 23% to $28 billion in July-March
Analysts noted that information technology and business services remain among the strongest contributors to export growth, although they are not yet large enough to offset the country’s substantial goods trade deficit.