ISLAMABAD: Pakistan’s merchandise trade deficit surged 20 per cent to $32 billion in the first 10 months of the current fiscal year, as the country imported more than twice what it sold abroad, official data showed Monday, raising fresh alarm over its fragile economic position.
Figures from the Pakistan Bureau of Statistics (PBS) showed imports during July-April of fiscal year 2026 climbed nearly 7.0 per cent to $57.2 billion, while exports slid more than 6.0 per cent to $25.2 billion, a lopsided gap that economists warn could drain foreign exchange reserves and put pressure on the rupee.
The deterioration continued into April 2026, when the monthly trade deficit widened nearly 4.0 per cent from a year earlier to just over $4 billion. Monthly exports rose 14 per cent to $2.48 billion, but were easily outpaced by imports, which climbed 7.5 per cent to $6.55 billion.
Services trade offered little relief. The services trade deficit narrowed 6.7 per cent to $2.15 billion during July-March FY26, as a healthy 17 per cent rise in services exports to $7.35 billion was outrun by a nearly 11 per cent surge in services imports to $9.5 billion.
One bright spot emerged in March 2026, when the monthly services deficit collapsed 81 per cent year-on-year (YoY) to just $22.9 million, down sharply from $120 million a year earlier. Services exports in March grew 16 percent to $903 million, while imports edged up just 3.0 per cent to $925 million.
“The performance of services trade has been encouraging for Pakistan in recent months,” a trade analyst noted.Still, the bigger problem remains. Pakistan’s exports are growing slowly while imports stay high. This makes it hard for the country to balance its finances. The situation is made worse because Pakistan still depends heavily on foreign loans to keep its cash reserves stable.
