The trade deficit expanded to $27.81 billion in July-March as exports declined while imports increased.
ISLAMABAD: Pakistan’s merchandise trade deficit surged 22.65% year-on-year to $27.81 billion in the first nine months of the current fiscal year, as imports continued to outpace exports by more than twofold, official data revealed on Monday, raising concerns over the country’s vulnerable external position, The News reported.
Data from the Pakistan Bureau of Statistics showed that imports during July-March FY26 rose 6.6% to $50.54 billion, while exports declined 8.04% to $22.7 billion, highlighting a growing trade imbalance that economists warn could strain foreign exchange reserves and increase pressure on the rupee.
The pressure continued into March 2026, with the monthly trade deficit rising 3.7% year-on-year to $2.73 billion. Exports fell sharply by 14.4% to $2.26 billion, while imports also declined by 5.4% to $4.995 billion.
The services sector offered limited relief. The services trade deficit widened 3.1% to $2.14 billion during July-February FY26, as an 18.4% increase in services exports to $6.46 billion was outpaced by a 14.2% rise in imports, which reached $8.6 billion.
A slight improvement was seen in February 2026, when the services deficit dropped 62% year-on-year to $97.8 million. However, analysts cautioned against drawing strong conclusions from a single month’s data.
With export growth remaining weak and import demand holding firm, economists say reducing the deficit will require either a significant boost in export competitiveness or sustained curbs on imports—both of which appear unlikely in the near term.
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