ISLAMABAD: Pakistan’s merchandise trade deficit swelled 22.65 percent year-on-year to $27.81 billion in the first nine months of the current fiscal year, as imports ran more than twice the value of exports, official data showed Monday, raising fresh alarm over the country’s fragile external position.
Figures from the Pakistan Bureau of Statistics showed imports during July-March FY26 climbed 6.6 percent to $50.54 billion, while exports slid 8.04 percent to $22.7 billion, a lopsided gap that economists warn could drain foreign exchange reserves and renew pressure on the rupee.
The deterioration extended into March 2026, with the monthly deficit widening 3.7pc year-on-year to $2.73 billion. Monthly exports fell a sharp 14.4 percent to $2.26 billion, though imports also eased 5.4 percent to $4.995 billion, offering marginal comfort.
Services trade on the other hand provided little cushion. The services deficit widened 3.1 percent to $2.14 billion in July-February FY26, as a healthy 18.4 percent rise in services exports to $6.46 billion was outpaced by a 14.2 percent surge in services imports to $8.6 billion.
One positive sign came in February 2026, when the services deficit fell 62 percent from a year earlier to $97.8 million. However, analysts warned not to read too much into just one month’s data.
With export momentum subdued and import demand proving resilient, economists say meaningful deficit reduction will require either a significant boost in export competitiveness or a sustained compression of imports, neither of which appears imminent.
