Islamabad: Pakistan's merchandise trade deficit expanded by 20 per cent to $32 billion during the first 10 months of the current fiscal year, heightening concerns about the country's fragile economic outlook, according to a report.
Quoting official data from the Pakistan Bureau of Statistics (PBS), The News reported that imports were more than double the value of exports.
According to the PBS data, imports during July-April of fiscal year 2026 climbed nearly 7 per cent to $57.2 billion, while exports slid more than 6 per cent to $25.2 billion, a lopsided gap that economists warn could drain foreign exchange reserves and put pressure on the Pakistani rupee, the report said.
The deterioration continued into April 2026, when the monthly trade deficit widened nearly 4 per cent from a year earlier to just over $4 billion. Monthly exports rose 14 per cent to $2.48 billion, but were easily outpaced by imports, which climbed 7.5 per cent to $6.55 billion.
Services Trade Offers Little Relief
Services trade offered little relief. The services trade deficit narrowed 6.7 per cent to $2.15 billion during July-March FY26, as a healthy 17 per cent rise in services exports to $7.35 billion was outrun by a nearly 11 per cent surge in services imports to $9.5 billion.
One bright spot emerged in March 2026, when the monthly services deficit collapsed 81 per cent year-on-year to just $22.9 million, down sharply from $120 million a year earlier. Services exports in March grew 16 per cent to $903 million, while imports edged up just 3 per cent to $925 million.
A trade analyst noted: "The performance of services trade has been encouraging for Pakistan in recent months."
Structural Imbalance Remains
Still, the bigger problem remains. Pakistan's exports are growing slowly while imports stay high. This makes it hard for the country to balance its finances. The situation is made worse because Pakistan still depends heavily on foreign loans to keep its cash reserves stable, according to The News.
