ISLAMABAD: Pakistan’s trade deficit widened by 18.1% year-on-year to $7.12 billion during the first two months of fiscal year 2026-27 as imports grew faster than exports, according to Pakistan Bureau of Statistics data released on Thursday.
The trade gap stood at $6.03 billion during the corresponding July-August period of the previous fiscal year.
Imports increased 13% year-on-year to $12.58 billion during the first two months of FY27, compared with $11.13 billion a year earlier. Meanwhile, exports rose 7% to $5.46 billion from $5.10 billion.
August Trade Gap Narrows From July
On a monthly basis, however, Pakistan’s trade deficit narrowed by 19.7% to $3.17 billion in August from $3.95 billion in July.
Imports declined 17.7% month-on-month to $5.68 billion from $6.89 billion. Similarly, exports fell 15% to $2.51 billion compared with $2.95 billion in July.
Nevertheless, the August trade deficit remained 10.4% higher year-on-year than the $2.87 billion recorded in August 2025.
Imports Continue to Outpace Export Growth
Exports increased 3.8% year-on-year in August from $2.42 billion in the corresponding month last year. However, imports climbed at a faster pace, rising 7.4% from $5.29 billion in August 2025.
Consequently, the latest figures indicate that import growth continues to exert pressure on Pakistan’s external trade balance despite the month-on-month improvement recorded in August.
The widening cumulative trade deficit comes as Pakistan works to strengthen its external account under an ongoing economic reform programme.
Therefore, sustaining export growth while managing import pressures remains important for narrowing the trade imbalance and reducing pressure on the country’s external financing requirements.
