ISLAMABAD: After five months of sluggish performance, Pakistan’s exports rebounded in January 2026, registering a year-on-year increase of 3.73 percent and a month-on-month rise of 34.96 percent, reaching USD3.06 billion in the first seven months of the 2025-26 fiscal year.
The improvement was driven by a sharp surge in exports alongside a significant decline in imports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
According to the Pakistan Bureau of Statistics’ (PBS) monthly summary of foreign trade for January 2026, total exports amounted to USD2.9 billion, up from $2.27 billion in December 2025.
READ MORE: Pakistan’s trade deficit surges 24% YoY to $3.7bn in December 2025
On a year-on-year (YoY) basis, however, the trade deficit contracted by only 6.61 percent from USD2.918bn in January 2025, as both exports and imports showed mixed performance.
On MoM exports in January 2026 surged to USD3.061bn crossing the USD3 billion mark for the first time in Pakistan’s trade history registering a strong 34.96 percent MoM increase compared to December, signalling a notable recovery in outbound trade.
Imports, meanwhile, declined to USD5.786 billion, down 4.85 percent MoM, resulted in significantly narrow the monthly trade gap.
The YoY comparison revealed modest improvements in Pakistan’s external trade position.
Exports increased 3.73 percent YoY from USD2.951 billion in January 2025, while imports decreased by 1.41 percent YoY from USD5.869 billon, resulting in a lower trade deficit of $2.725 billion.
The data showed that during the first seven months of FY26, exports totalled USD18.195 billion, reflecting a decline of 7.09 percent YoY, while imports witnessed an increase of 9.42 percent YoY to USD40.233 billion.
As a result, the cumulative trade deficit widened significantly to $22.038bn, reflecting an increase of 28.22 percent increase compared to the same period last year.
Despite the positive monthly performance in January, the data emphasizes ongoing structural challenges for Pakistan’s trade sector. While the month showed encouraging signs with record-breaking exports and falling imports, the cumulative trend continues to reflect pressure on the country’s balance of payments.
Copyright Business Recorder, 2026
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