Exports fall and imports rise during July–May FY2025-26, though monthly trade gap narrows sharply in May
Pakistan recorded trade deficit of $34.76 billion during the first eleven months (July–May) of fiscal year 2025-26 or 11MFY26 as declining exports and higher imports continued to pressure the country’s external sector, according to data released by the Pakistan Bureau of Statistics.
The trade gap increased by 17.48% compared with $29.58 billion recorded during the corresponding period of FY2024-25.
Official figures showed that exports declined by 5.61% to $27.90 billion during July–May FY2025-26, compared with $29.56 billion in the same period of the previous fiscal year.
Meanwhile, imports rose by 5.94% to $62.66 billion, up from $59.15 billion recorded during the corresponding eleven months of FY2024-25, resulting in a wider trade imbalance.
Despite the deterioration in cumulative figures, Pakistan’s trade performance improved significantly on a month-on-month basis in May 2026.
The monthly trade deficit narrowed by nearly 40% to $2.58 billion, compared with $4.26 billion recorded in April 2026.
Exports increased by 9.59% to $2.71 billion in May from $2.47 billion in the previous month, while imports declined sharply by 21.45% to $5.29 billion from $6.73 billion in April.
The combination of stronger exports and lower imports helped reduce the monthly trade gap and provided temporary relief to the external account.
On a year-on-year basis, the trade deficit in May 2026 declined by 13.68% compared with the same month last year.
Exports recorded a modest increase of 1.26%, while imports fell by 6.63% compared with May 2025, indicating an improvement in monthly trade dynamics despite broader challenges.
Economists said the widening cumulative trade deficit highlights the importance of accelerating export growth, diversifying export markets and improving competitiveness to ensure external sector stability.
They noted that managing import demand while sustaining economic growth will remain a key policy challenge as Pakistan seeks to strengthen foreign exchange reserves and support its economic recovery efforts.
