Pakistan recorded its highest monthly trade deficit in nearly four years, with the gap widening to $4 billion in April 2026 as imports continued to grow faster than exports, adding pressure on the country’s external position.
According to data released by the Pakistan Bureau of Statistics, the trade deficit increased 4% compared to the same month last year and surged 44% on a quarterly basis.
For the first 10 months of fiscal year 2025-26, the deficit expanded by 20% to $32 billion. Imports during July–April rose nearly 7% to $57.2 billion, while exports declined by more than 6% to $25.2 billion, reflecting ongoing challenges in boosting outbound trade and easing reliance on external financing.
In April alone, exports showed some recovery, rising 14% year-on-year to $2.48 billion. However, this was outweighed by imports, which climbed 7.5% to $6.55 billion, keeping the overall trade gap elevated.
The services sector offered limited relief. The services trade deficit narrowed by 6.7% to $2.15 billion during July–March FY26, supported by a 17% increase in services exports to $7.35 billion. However, services imports also rose by nearly 11% to $9.5 billion, offsetting much of the improvement.
A sharper monthly improvement was recorded in March, when the services trade deficit dropped by 81% year-on-year to $22.9 million. Services exports increased 16% to $903 million, while imports edged up 3% to $925 million.
Despite these gains, the broader trade outlook remains challenging. Strong import demand and relatively weak export performance are expected to continue putting pressure on the Pakistani rupee and complicate efforts to stabilize the country’s external accounts.
