Pakistan’s trade deficit widened sharply by 28.22% to $22.04 billion during the first seven months of the current fiscal year (7MFY26), compared to the same period last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
The country had posted a trade deficit of $17.19 billion in July-January of the previous fiscal year (7MFY25). The year-on-year (YoY) increase was driven by a rise in imports and a contraction in exports during the period under review.
Exports in 7MFY26 stood at $18.20 billion, down 7.1% from $19.58 billion in the corresponding period of FY25.
Meanwhile, imports surged to $40.23 billion, up 9.42% from $36.77 billion in the same period last year, further widening the trade gap.
On a monthly basis, Pakistan’s exports showed improvement. Exports totaled $3.06 billion in January 2026, up 3.73% from $2.95 billion in January 2025.
Imports in January 2026, however, eased slightly to $5.79 billion, down 1.41% from $5.87 billion recorded in the same month last year.
As a result, the country’s trade deficit for January 2026 narrowed to $2.72 billion, reflecting a 6.61% decline from $2.92 billion in January 2025.
Compared with the previous month, the trade gap also improved. On a month-on-month basis, Pakistan’s trade deficit dropped 28.53% from $3.81 billion in December 2025, indicating some short-term easing in external pressures despite the deterioration during the fiscal year so far.
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