Islamabad, January 2, 2026 – Pakistan reported a 8.70% decline in exports, leading to a 34.57% increase in the trade deficit during the first half (July–December) of fiscal year 2025-26, compared to the same period last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.
Exports fell to $15.18 billion in the first six months of the current fiscal year, down from $16.63 billion during the corresponding period of FY25. Analysts pointed to sluggish global demand and a challenging domestic environment as key factors behind the drop. Additionally, the recent move by the Federal Board of Revenue (FBR) to scrutinize exporters’ tax filings has further compounded the pressure on the sector.
Meanwhile, Pakistan’s import bill increased by 11.28%, reaching $34.39 billion, up from $30.90 billion in the same period last year. This surge in imports, coupled with falling exports, caused the trade deficit to balloon to $19.20 billion, compared with $14.27 billion in the first half of FY25.
On a month-on-month (MoM) basis, exports fell 4.26% to $2.32 billion in December 2025, while imports rose 13.49%, widening the trade deficit by 28.38%. On a year-on-year (YoY) comparison for December, exports dropped sharply by 20.41%, imports increased by 2%, and the trade deficit expanded by 23.79%.
Economists warned that without targeted measures to boost exports and manage import growth, Pakistan’s current account and macroeconomic stability could face mounting pressure in the coming months. Strengthening the export sector remains critical to narrowing the trade gap and sustaining economic growth.