Pakistan’s Trade Deficit Worsens By 25% in 8 Months

Pakistan’s trade deficit widened 25% to $25.042 billion in the first eight months of FY26, as exports fell sharply and imports remained elevated despite a monthly slowdown, according to data released by the Pakistan Bureau of Statistics and compiled by Arif Habib Limited.

Data released by the Pakistan Bureau of Statistics and compiled by Arif Habib Limited showed that exports during July–February totaled $20.462 billion, down 7.3% from $22.073 billion in the same period last year. Imports, however, rose 8.1% to $45.504 billion, compared with $42.110 billion in 8MFY25.

On a monthly basis, Pakistan posted a trade deficit of $2.981 billion in February 2026. Exports for the month stood at $2.272 billion, falling 8.8% year on year and plunging 25.6% from January’s $3.055 billion, reflecting a sharp contraction in external shipments.

Imports during the month were recorded at $5.253 billion. Imports declined by 1.6 percent from $5.339 billion in February 2025. Compared to January 2026, imports fell by 9.5 percent to $5.805 billion, indicating some easing in monthly demand.

The accompanying trend data show that while imports have moderated from recent peaks, they continue to outpace exports by a wide margin, keeping pressure on the external account and foreign exchange reserves.