Pakistan’s Trade Deficit Widens 18% To $7.12bn In 2MFY27.
✧ GENERATE BRIEFING +
Pakistan’s trade deficit widened by 18.1% year-on-year to $7.12 billion during the first two months (July-August) of fiscal year 2026-27, driven by import growth significantly outpacing export gains, according to data released by the Pakistan Bureau of Statistics (PBS). The external trade gap increased from $6.03 billion recorded in the same period of the previous fiscal year, as imports surged 13% to $12.58 billion compared to $11.13 billion a year earlier. Meanwhile, exports grew at a milder pace of 7% to reach $5.46 billion, up from $5.10 billion. On a monthly basis, however, August saw a temporary cooling, with the trade deficit narrowing 19.7% to $3.17 billion from $3.95 billion in July as both imports and exports experienced sequential monthly contractions. Despite this monthly easing, August's deficit remained 10.4% higher than the $2.87 billion recorded in August 2025, underscoring persistent structural pressure on Pakistan's external account as domestic economic activity drives up import demand.
Pakistan’s trade deficit widened 18.1% year-on-year to $7.12 billion during the first two months of fiscal year 2026-27, as imports grew significantly faster than exports, according to data released by the Pakistan Bureau of Statistics (PBS).
The trade gap increased from $6.03 billion recorded in July-August of the previous fiscal year. Imports rose 13% to $12.58 billion, compared with $11.13 billion a year earlier.
Meanwhile, exports increased 7% to $5.46 billion during the period, up from $5.10 billion in the corresponding period of FY26. The faster pace of import growth therefore continued to widen the external trade gap.
On a monthly basis, the trade deficit narrowed 19.7% in August to $3.17 billion from $3.95 billion in July. Imports fell 17.7% month-on-month to $5.68 billion, while exports declined 15% to $2.51 billion.
Despite the monthly improvement, August’s trade deficit remained 10.4% higher year-on-year than the $2.87 billion recorded in August 2025. August exports rose 3.8% year-on-year, while imports increased 7.4%.
The latest figures highlight continued pressure on Pakistan’s external account, with import growth outpacing the expansion in export earnings during the opening months of FY27.
