- September 3, 2026
- Posted by: Tresmark
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Pakistan’s trade deficit widened by 18.1% year-on-year during the first two months of fiscal year 2026-27, reaching $7.12 billion in July-August, as import growth continued to outpace the increase in exports.
According to data released by the Pakistan Bureau of Statistics (PBS) on Thursday, the trade gap stood at $6.03 billion during the corresponding period of the previous fiscal year.
Imports rose 13% year-on-year to $12.58 billion during 2MFY27, compared with $11.13 billion recorded in the same period last year. Meanwhile, exports increased by 7% to $5.46 billion, up from $5.10 billion.
On a month-on-month basis, however, the trade deficit narrowed by 19.7% in August 2026 to $3.17 billion, compared with $3.95 billion in July.
The improvement was primarily driven by a decline in imports, which fell 17.7% month-on-month to $5.68 billion in August from $6.89 billion in July. Exports also declined by 15% to $2.51 billion, compared with $2.95 billion in the previous month.
Despite the monthly improvement, the August trade deficit remained 10.4% higher than the $2.87 billion recorded in August 2025.
Exports during August rose 3.8% year-on-year from $2.42 billion, while imports increased 7.4% from $5.29 billion in the same month last year.
The latest figures highlight continued pressure on Pakistan’s external trade balance, with stronger import growth offsetting gains in exports as the country works to strengthen its external account under its ongoing economic reform programme.
