Pakistan’s trade balance has come under renewed pressure as imports continue to outpace exports. During the first nine months of FY2025–26, the country recorded a larger deficit, signaling a growing strain on external accounts. According to the Pakistan Bureau of Statistics (PBS), both rising import demand and falling exports contributed to this widening gap.
Trade Gap Widens on Rising Imports and Falling Exports
The trade deficit reached $27.8 billion between July and March in FY2025–26, compared to $22.7 billion in the same period last year. This marks a sharp increase of 22.65 percent. In local currency, the deficit climbed to Rs7.83 trillion, reflecting a 23.99 percent year-on-year rise.
Imports played a key role in this increase. They grew by 6.64 percent to $50.5 billion, or Rs14.22 trillion. In the same period last year, imports stood at $47.4 billion, or Rs13.20 trillion. Meanwhile, exports moved in the opposite direction. They fell by 8.04 percent to $22.7 billion, or Rs6.39 trillion, from $24.7 billion, or Rs6.88 trillion a year earlier.
Looking at March 2026 alone, trade activity showed mixed trends. Exports dropped by 14.40 percent to $2.26 billion compared to $2.65 billion in March 2025. At the same time, imports declined by 5.37 percent to $4.99 billion from $5.28 billion. As a result, the monthly trade deficit reached $2.73 billion, slightly higher than the $2.63 billion recorded a year ago. This reflects a 3.71 percent increase year-on-year.
However, a month-on-month comparison shows some improvement. The deficit narrowed by 9.36 percent in March 2026 compared to February 2026, when it stood at $3.01 billion. Exports slipped by 0.55 percent, while imports fell more sharply by 5.57 percent. This drop helped reduce the overall gap for the month.
Analysts point to higher import demand, especially for energy and industrial goods, as a major reason for the widening deficit. At the same time, weak global demand continues to pressure export performance.
