ISLAMABAD: Pakistan’s merchandise trade deficit increased by 22.65% year-on-year to $27.81 billion during the first nine months (July-March) of the current fiscal year, official data showed on Monday.
According to the Pakistan Bureau of Statistics, imports rose 6.6% to $50.54 billion, while exports declined 8.04% to $22.7 billion. This means imports were more than double the value of exports, widening the trade gap further.
Economists have warned that the growing deficit could put fresh pressure on the country’s foreign exchange reserves and the rupee.
March Deficit Also Rises
The problem continued in March 2026, when the monthly trade deficit grew by 3.7% to $2.73 billion compared to the same month last year. Exports fell sharply by 14.4% to $2.26 billion, while imports dropped 5.4% to $4.995 billion.
Services trade provided little relief. The services deficit increased by 3.1% to $2.14 billion during July-February FY26. Although services exports rose by a healthy 18.4% to $6.46 billion, services imports grew even faster by 14.2% to $8.6 billion.
In February, the services deficit shrank significantly by 62% to $97.8 million, but analysts said it is too early to see this as a trend.
Challenges Ahead
With exports remaining weak and import demand staying strong, economists believe a meaningful reduction in the trade deficit will be difficult. They say it will require either a big boost in exports or a sustained cut in imports — neither of which looks likely in the near future.
The widening trade imbalance has added to concerns about Pakistan’s fragile external economic position.
