Pakistan’s trade deficit widened to $3.306 billion in August 2026 as imports increased at more than twice the pace of exports on a year-on-year basis, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
Exports rose 5.22% year-on-year to $2.542 billion in August, while imports increased 10.59% to $5.848 billion. Compared with July, exports declined 13.86% and imports fell 15.22%.
The August trade deficit was around 15.1% higher than the deficit calculated for August 2025, but 16.2% lower than July’s $3.947 billion gap.
During the first two months of FY27, exports increased 7.73% to $5.494 billion, while imports rose 14.56% to $12.745 billion. As a result, Pakistan’s cumulative trade deficit reached $7.251 billion, up around 20.3% from the corresponding period last year.
In rupee terms, the August trade deficit stood at Rs. 920.101 billion, while the July-August gap reached approximately Rs. 2.020 trillion.
Pakistan’s exports totaled $2.542 billion in August, compared with $2.951 billion in July and $2.416 billion in August 2025.
Knitwear remained the leading major export category at Rs. 130.691 billion, followed by readymade garments at Rs. 101.903 billion and bedwear at Rs. 70.816 billion.
Basmati rice recorded a notable increase, rising 67.02% year-on-year and 14.43% month-on-month. Cotton yarn exports also increased 46.42% year-on-year and 41.33% from July.
However, several major export categories recorded monthly declines, including knitwear, readymade garments, bedwear, cotton cloth, and towels.
Imports reached $5.848 billion in August, compared with $6.898 billion in July and $5.288 billion a year earlier.
Petroleum crude was the largest major import category at Rs. 201.173 billion, followed by petroleum products at Rs. 132.941 billion. Electrical machinery and apparatus accounted for Rs. 85.874 billion, while palm oil stood at Rs. 75.666 billion.
Crude oil imports increased 45.56% year-on-year, while petroleum product imports rose 32.54%. Raw cotton imports also recorded a 47.79% annual increase.
The latest figures show that while Pakistan’s exports continued to grow on a yearly basis, the faster increase in imports resulted in a wider trade gap during the first two months of FY27.
