ISLAMABAD: Official data released on Monday showed that Pakistan’s merchandise trade deficit expanded by 20% to $32 billion during the first 10 months of the current fiscal year.
Imports were more than double the value of exports, further heightening concerns about the country’s fragile economic outlook, The News reported.
Figures from the Pakistan Bureau of Statistics (PBS) showed imports during July-April of fiscal year 2026 climbed nearly 7% to $57.2 billion, while exports slid more than 6% to $25.2bn, 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% from a year earlier to just over $4bn. Monthly exports rose 14%to $2.48bn, but were easily outpaced by imports, which climbed 7.5% to $6.55bn.
Services trade offered little relief. The services trade deficit narrowed 6.7% to $2.15bn during July-March FY26, as a healthy 17% rise in services exports to $7.35bn was outrun by a nearly 11% surge in services imports to $9.5bn.
One bright spot emerged in March 2026, when the monthly services deficit collapsed 81% year-on-year (YoY) to just $22.9 million, down sharply from $120m a year earlier. Services exports in March grew 16% to $903 million, while imports edged up just 3% to $925m.
“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.
