Pakistan’s trade deficit widened sharply to $12.7 billion in the first four months of FY26, with falling exports and rising imports putting fresh pressure on the external account. The latest Pakistan Bureau of Statistics (PBS) data shows the gap expanding 39 percent year-on-year, highlighting renewed stress on the country’s trade position.
This surge comes amid weak global demand for Pakistan’s food and textile products, while higher petroleum prices and larger energy purchases pushed the import bill significantly upward. Officials say the export drop is led mainly by food commodities, especially rice, which has seen a steep decline in shipments.
In October 2025 alone, exports slipped 4.5 percent year-on-year to $2.8 billion, though they improved 14 percent from September. Imports, however, rose to $6.13 billion, up 21.6 percent year-on-year, driven by costly petroleum purchases and rising industrial demand.
PBS data shows food exports down 35 percent in the July–October period, with rice shipments dropping 46 percent Basmati by 39 percent and IRRI varieties by nearly 50 percent.
An official quoted in the report said,
“Global prices softened while freight rates and competition increased, affecting Pakistan’s rice competitiveness.”
Textile exports, however, offered mild support, rising 4 percent during the same period. Knitwear, bedwear, cotton yarn and readymade garments all showed moderate growth. Meanwhile, sports goods performed strongly, with football exports jumping 26 percent.
Imports surged largely due to petroleum products, with crude imports up over 13 percent and refined products rising more than 10 percent. Industrial inputs also increased, including synthetic fibres and worn clothing, while mobile phone imports saw a notable decline.
The expanding deficit signals renewed pressure on Pakistan’s external finances at a time when economic stability depends heavily on export recovery and controlled import growth. Market watchers expect the government to push for stronger textile incentives and targeted support for food exporters in the coming months.