Pakistan’s trade gap with China widened sharply during the first two months of the current fiscal year. The deficit reached $3.77 billion in July and August 2026, marking a 41% increase from the same period last year.
Pakistan recorded a $2.67 billion trade deficit with China during July and August 2025. The latest figures show that both imports and exports increased during the opening two months of the fiscal year.
However, the stronger rise in imports pushed the overall trade deficit higher despite significant export growth.
Pakistan’s Imports From China Rise 41.56%
Pakistan imported goods worth $4.24 billion from China during July and August 2026. Imports stood at around $3 billion during the corresponding period last year.
This represents an increase of 41.56% over the same period. As a result, the sharp rise in imports became a major factor behind the widening trade gap.
The increase also came despite stronger Pakistani exports to the Chinese market during the same period.
Pakistan’s Exports to China Grow 44.41%
Pakistan’s exports to China also recorded substantial growth during the first two months of fiscal year 2026-27. Exports reached $480 million during July and August 2026.
By comparison, Pakistan exported goods worth $330 million to China during the same period last year. The latest figures represent an increase of 44.41% in exports to China.
Therefore, Pakistani exports grew at a faster percentage rate than imports during the period. However, the larger overall value of imports continued to create a significant trade imbalance.
Trade Deficit With China Widens
The latest figures highlight the growing gap between Pakistan’s imports from China and its exports to the country.
Although exports increased by $150 million compared with the previous year, imports rose by a much larger amount. Imports increased by around $1.24 billion during the same period.
Consequently, Pakistan’s trade deficit with China expanded from $2.67 billion to $3.77 billion. The figures show that stronger exports alone were not enough to offset the increase in imports.
China Trade Gap Reaches $3.77 Billion
Pakistan’s trade relationship with China recorded growth on both sides during July and August 2026. However, the pace and value of imports remained significantly higher than exports.
Imports reached $4.24 billion, while exports stood at $480 million during the two-month period. As a result, Pakistan’s trade deficit with China climbed to $3.77 billion.
The latest figures therefore show a sharp expansion in the trade gap despite a notable increase in Pakistani exports.
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