Trade deficit widens 6.2pc to $3.56bn

ISLAMABAD: Pakistan’s merchandise trade deficit widened 6.2 per cent year-on-year (YoY) to $3.56 billion in September 2026, as imports remained more than twice the value of exports despite a strong 17.6 per cent increase in overseas shipments, official data showed on Friday.

Exports rose 17.6 per cent to $2.94 billion in September from $2.50 billion a year earlier, while imports increased 11.1 per cent to $6.49 billion from $5.85 billion, according to the Pakistan Bureau of Statistics.

The trade gap consequently increased to $3.56 billion from $3.35 billion in September 2025 and $3.29 billion in August 2026.The widening deficit came as the value of imports increased by about $646 million from a year earlier, compared with a roughly $440 million rise in exports.

During the first quarter (July-Sept) of fiscal 2026-27, the trade deficit expanded 15.3 per cent to $10.8 billion, from $9.37 billion in the same period last year.Exports during July-September rose 10.8 per cent to $8.42 billion, while imports jumped 13.2 per cent to $19.2 billion, keeping import growth ahead of export growth.

The latest figures follow a wider deterioration in merchandise trade during fiscal 2025-26, when the trade deficit rose 21.6 per cent to $39.47 billion. Exports fell 6.0 per cent to $30.13 billion, while imports increased 7.9 per cent to $69.6 billion.

Meanwhile, Pakistan’s services trade deficit narrowed sharply in August 2026, falling 37.2 per cent to $282.7 million from $450 million a year earlier, the PBS said.In August, the exports in increased by 29 per cent to $873 million from $677 million last year. Imports however increased by 2.5 per cent to $1.156 billion from $1.127 billion in August 2025.

Services exports fell 6.9 per cent month-on-month to $873 million in August, while imports declined 4.9 per cent to $1.16 billion.During July-August, the services deficit fell 25.8 per cent to $559.5 million from $754.5 million a year earlier. Services exports surged 28.9 per cent to $1.81 billion, while imports rose 9.8 per cent to $2.37 billion.