Pakistan’s exports staged a strong recovery in May 2026, reaching $2.7 billion, reflecting a 9.6 percent month-on-month increase and a 1.3 percent rise compared to the same period last year, signaling resilience in the country’s external sector despite ongoing global economic challenges.
At the same time, imports declined significantly to $5.3 billion, down 21.5 percent from April 2026 and 6.6 percent year-on-year. The sharp reduction in imports helped ease pressure on Pakistan’s external account and contributed to a notable improvement in trade indicators.
As a result, the country’s trade deficit narrowed to $2.6 billion in May, marking a 39.4 percent improvement on a monthly basis and a 13.7 percent improvement year-on-year. The export-import gap shrank by nearly $1.7 billion compared to the previous month.
The improvement in the trade balance was supported by rising exports and lower import volumes, while additional support came from stronger foreign exchange inflows. Remittances increased during the Eid period, and Pakistan’s IT exports continued to record double-digit growth.
According to available data, the current account deficit remained contained at $252 million during the first ten months of FY2025-26, staying comfortably below the full-year projection of around $2 billion, equivalent to approximately 0.5 percent of GDP.
Economic analysts believe the latest figures reflect strengthening external-sector fundamentals, helping improve foreign exchange reserves, external buffers, and overall macroeconomic stability. They noted that sustained export growth, controlled imports, and steady remittance inflows could further support economic growth in the coming months.
However, experts cautioned that global economic uncertainty, geopolitical developments, and fluctuations in international commodity prices remain key risks that could influence Pakistan’s trade performance going forward.
