Pakistan’s trade deficit widens 18% in 2MFY27

Pakistan’s trade deficit widened by 18.1% year-on-year to $7.12 billion during the first two months (July-August) of fiscal year 2026-27, according to data released by the Pakistan Bureau of Statistics (PBS) on Thursday.

According to the data, the trade gap stood at $6.03 billion in the corresponding period of the previous fiscal year.

The increase was driven by a faster growth in imports, which rose 13% YoY to $12.58 billion during 2MFY27, compared with $11.13 billion in the same period last year.

Meanwhile, the country’s exports increased 7% YoY to $5.46 billion from $5.10 billion.

On a monthly basis, Pakistan’s trade deficit narrowed 19.7% in August 2026 to $3.17 billion from $3.95 billion in July.

Imports fell 17.7% MoM to $5.68 billion in August as compared to $6.89 billion in July, while exports declined 15% to $2.51 billion, compared to $2.95 billion in July.

Jul trade deficit widens 25.17pc to USD3.94bn YoY 

Despite the monthly contraction, the August trade deficit was 10.4% higher year-on-year than the $2.87 billion recorded in August 2025.

Exports in August rose 3.8% YoY from $2.42 billion in the same period last year, while imports increased 7.4% from $5.29 billion in August 2025, indicating continued pressure from the import side on the country’s external trade balance.

The widening trade deficit comes as Pakistan seeks to strengthen its external account position under its ongoing economic reform programme.