Pakistan's merchandise trade deficit widened 19.7 per cent year-on-year to $3.877 billion in October 2026, as imports remained more than twice the value of exports, official data showed on Friday. Exports during the month rose 8 per cent to $2.93 billion in October from $2.85 billion a year earlier, while imports increased 11.8 per cent to $6.81 billion from $6.1 billion, according to the Pakistan Bureau of Statistics (PBS).
The trade gap consequently increased to $3.877 billion from $3.24 billion in October 2025. During the first four months (July-October) of fiscal year 2026-27, the trade deficit expanded 15.97 per cent to $14.63 billion, from $12.6 billion in the same period last year.
Exports during July-October rose 8.5 per cent to $11.34 billion, while imports jumped 12.6 per cent to $25.96 billion, keeping import growth ahead of export growth. The latest figures follow a wider deterioration in merchandise trade during fiscal 2025-26, when the trade deficit rose 21.6 per cent to $39.47 billion.
Meanwhile, Pakistan's services trade deficit increased sharply in September 2026, jumping 84.3 per cent to $282.7 million from $153.4 million a year earlier, the PBS said. In September, exports increased by 15.35 per cent to $930 million from $806 million last year.
Imports increased by 26.4 per cent to $1.21 billion from $0.959 billion in September 2025. During the first quarter (July-September) of 2026-27, the services deficit fell by only 0.33 per cent to $832 million from $834.9 million a year earlier.
Services exports surged 22.6 per cent to $2.7 billion, while imports rose 16.3 per cent to $3.55 billion. The persistent gap between import and export growth continues to pose challenges for the national balance of payments, as the government seeks to stabilize the economy through various fiscal measures.
Economic analysts suggest that the rise in imports is largely driven by the resumption of industrial activity and the procurement of essential raw materials. However, the widening deficit highlights the urgent need for structural reforms to boost export competitiveness.
The government remains under pressure to manage the current account deficit, which is heavily influenced by these trade figures. Policymakers are expected to review these statistics to adjust monetary policies accordingly in the coming months.
As the fiscal year progresses, the focus remains on whether the export sector can gain enough momentum to offset the rising import bill. The upcoming months will be critical in determining the overall economic trajectory for the remainder of the year.
The Pakistan Bureau of Statistics continues to monitor these trends closely, providing the necessary data for stakeholders to assess the health of the country's external trade sector.