Pakistan’s trade deficit has widened by 17.48% during the first eleven months of the current fiscal year 2025-26, according to the latest data released by the Pakistan Bureau of Statistics (PBS). The country recorded a trade deficit of US$34.758 billion in the July-May period, reflecting persistent imbalances in the external sector.
The PBS data revealed that imports increased by 5.94% year-on-year to US$62.662 billion, while exports declined by 5.61% to US$27.904 billion. This divergence underscores ongoing structural challenges, including dependence on imported energy and raw materials, and sluggish export growth despite government incentives. Analysts point to global economic uncertainties and domestic policy constraints as key factors.
For May 2026 alone, the trade deficit stood at US$2.582 billion, with exports of US$2.705 billion and imports of US$5.287 billion. On a month-on-month basis, exports rose by 9.59% compared to April, a positive but modest sign, while imports fell sharply by 21.45%. Compared to May 2025, exports grew by 1.26%, and imports declined by 6.63%, suggesting some improvement in the monthly trade balance, Ary News Reported.
Pakistan’s trade deficit has been a persistent concern, often leading to pressure on the rupee and foreign exchange reserves. The government has implemented various measures to boost exports, including easing access to credit and reducing duties on export-oriented industries. However, the results have been mixed, with the latest figures highlighting the need for more comprehensive reforms.
According to the Pakistan Bureau of Statistics, the trade data reflects the country’s economic activity and external vulnerabilities. The widening deficit also raises questions about the effectiveness of current trade policies in a challenging global environment, marked by rising inflation and supply chain disruptions.
Economic experts warn that without a strategic shift towards export diversification and import substitution, Pakistan may continue to face balance-of-payments pressures. The government’s focus on IT and textile exports may yield results in the medium term, but the latest numbers call for urgent action to stabilize the external sector.
In conclusion, the 17.5% widening of the trade deficit for the first 11 months of FY2025-26 highlights persistent challenges in Pakistan’s external sector. While monthly improvements in May offer some optimism, sustained efforts are needed to boost exports and manage imports effectively. For further context on trade dynamics, see Reuters’ global trade coverage.
Source: ARY News