Pakistan's trade deficit ballooned to $39.5 billion in the fiscal year 2025-26, marking a 21.57 percent increase from $32.5 billion in the preceding year, according to the latest data from the Pakistan Bureau of Statistics (PBS). The widening gap was driven by a decline in exports and a significant rise in imports.
Exports Fall, Imports Rise
The country's exports dropped by 5.97 percent to $30.1 billion in FY2025-26, down from $32 billion recorded in the same period last year. Meanwhile, imports grew by 7.89 percent to $69.6 billion, compared to $64.5 billion in the previous fiscal year.
On a year-on-year basis, exports in June 2026 fell 9.61 percent to $2.2 billion from $2.5 billion in June 2025. Imports in June 2026 surged 26.27 percent to $6.8 billion from $5.4 billion in the same month last year. The trade deficit for June 2026 stood at $4.5 billion.
Month-on-Month Trends
Month-on-month data for June 2026 shows exports decreased by 16.7 percent to $2.2 billion from $2.6 billion in May 2026. Imports rose 24.07 percent to $6.8 billion from $5.5 billion in the previous month. Consequently, the month-on-month trade deficit grew by 63.8 percent, reaching $4.5 billion in June 2026 compared to $2.8 billion in June 2025.
The PBS data underscores persistent challenges in Pakistan's external sector, with imports outpacing exports and exerting pressure on the country's foreign exchange reserves.
