ISLAMABAD, November 6, 2026: Pakistan’s trade deficit widened by nearly 16% to $14.63 billion during the first four months of the current fiscal year, as imports grew faster than exports, according to figures released by the Pakistan Bureau of Statistics (PBS).
The trade deficit reached $14.628 billion during July–October of fiscal year 2026–27, compared with $12.614 billion in the corresponding period of the previous fiscal year.
The figures showed that the trade gap increased by more than $2 billion year-on-year, reflecting continued pressure from rising imports despite growth in exports.
According to the PBS data, exports increased by 8.52% to $11.33 billion during the four-month period, while imports rose by 12.59% to more than $25.96 billion.
The faster growth in imports contributed to the widening trade deficit, highlighting the gap between the country’s foreign trade earnings and expenditure on imported goods.
Trade deficit rises further in October
On a monthly basis, Pakistan’s trade deficit increased by 10.30% to $3.87 billion in October 2026, compared with September.
Exports rose by 2.84% month-on-month to $2.92 billion, while imports increased by a sharper 5.72% to $6.80 billion.
The higher import growth meant that the trade gap continued to expand despite an improvement in export earnings.
Compared with October 2025, the trade deficit increased by 19.70%, indicating a further deterioration in the country’s merchandise trade balance.
Pakistan’s trade performance at a glance
| Indicator | July–October FY2026–27 | Annual change |
|---|---|---|
| Exports | $11.33 billion | +8.52% |
| Imports | $25.96 billion | +12.59% |
| Trade deficit | $14.628 billion | Nearly +16% |
| Previous year’s trade deficit | $12.614 billion | — |
A trade deficit occurs when the value of goods imported by a country exceeds the value of its exports over a given period.
A widening merchandise trade deficit can increase demand for foreign currency and place pressure on external financing requirements, particularly when import growth consistently outpaces export earnings.
The latest PBS figures indicate that although Pakistan’s exports recorded growth during the first four months of FY2026–27, the stronger increase in imports continued to widen the country’s trade imbalance.