Pakistan’s Trade Deficit Expands 16% to $14.63 Billion in First Four Months of FY2026-27

Pakistan’s merchandise trade deficit widened by nearly 16% to $14.63 billion during the first four months of the 2026-27 fiscal year, according to data from the Pakistan Bureau of Statistics reported by Profit by Pakistan Today. The country’s imports surged by more than 12% to $25.96 billion, while exports grew by just over 8% to $11.34 billion. This disparity highlights that export expansion failed to keep pace with the rising cost of imports.

In October alone, the trade deficit rose nearly 20% year-on-year to $3.88 billion. Imports increased by almost 12% to $6.81 billion, whereas exports saw a modest 2.8% increase, reaching $2.93 billion. Key import categories include petroleum products, machinery, chemicals, and essential goods, while traditional exports remain dominated by textiles, rice, and leather. The report points to energy costs, taxation, financing expenses, and policy uncertainty as major obstacles to competitiveness. A sustained gap between import and export growth is expected to intensify pressure on the nation’s current account and foreign exchange reserves.

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