Pakistan’s trade deficit widened by 18% year-on-year to $7.1 billion during the first two months of fiscal year 2026-27, as imports increased at a faster pace than exports.
According to data released by the Pakistan Bureau of Statistics (PBS), exports increased by 7% YoY to $5.5 billion during July-August 2026. Meanwhile, imports rose by 13% to $12.6 billion, resulting in a wider trade gap.
In August 2026 alone, Pakistan’s trade deficit stood at $3.2 billion, representing a 10% increase year-on-year. However, the monthly deficit declined by 20% compared with July.
Pakistan’s exports amounted to $2.5 billion in August, up 3.8% from the same month last year but down 15% from July. Imports stood at $5.7 billion, increasing 7.4% YoY while falling 17.6% month-on-month.
The latest figures come after a stronger performance in July and have taken the cumulative trade deficit for the first two months of FY27 to $7.1 billion.
The widening trade gap highlights the continued pressure from faster-growing imports despite an increase in Pakistan’s export earnings.
