Pakistan’s trade deficit widened sharply in the first eleven months of the current fiscal year, crossing $34.75 billion as imports increased and exports declined, according to data from the Bureau of Statistics.
However, the trade sector showed some improvement in May, with the monthly trade deficit falling significantly due to higher exports and lower imports.
According to the Pakistan Bureau of Statistics, Pakistan’s trade deficit increased by 17.48% during the July-May period of the current fiscal year.
The overall trade gap exceeded $34.75 billion, showing a significant increase compared to the same period of the previous year.
The deficit rose by around $5.17 billion during the first eleven months, mainly because exports declined while imports continued to grow.
Exports decline while imports increase
Between July 2025 and May 2026, Pakistan’s exports fell by 5.61% to $27.90 billion. During the same period, imports increased by 6%, with the total import volume exceeding $62.66 billion.
The data shows a widening gap between Pakistan’s foreign imports and exports, adding pressure to the country’s external account.
Despite the overall increase in the eleven-month trade deficit, May brought some positive news for the economy. Pakistan’s trade deficit in May was limited to around $2.58 billion, compared with nearly $4.5 billion in April.
This marked a 49% decline on a monthly basis and a 14% reduction compared to May of the previous year.
Exports rise in May
Exports improved during May, helping reduce the monthly trade imbalance. Compared to April, exports increased by 9.59% in May and reached around $2.75 billion, against $2.46 billion in April.
According to another set of figures, exports rose nearly 10% on a monthly basis to $2.77 billion.
On an annual basis, exports in May 2026 increased slightly by 1.26% compared with $2.67 billion in May 2025.
Imports recorded a notable monthly decline in May 2026. According to the data, imports stood at around $5.28 billion in May, showing a decrease of 21.45% from April.
Another figure placed May imports at $5.29 billion, reflecting a 21% monthly drop. The reduction in imports, combined with improved exports, helped narrow the monthly trade deficit.
Annual deficit still a concern
Although the monthly trade gap improved in May, the overall trade position remained under pressure during the first eleven months of the fiscal year.
The financial volume of exports during July-May stood close to $28 billion, while imports remained above $62 billion.
Economists view the widening trade deficit as a key challenge for Pakistan’s external sector, especially as the country continues to manage pressure from import payments and export weakness.
