Imports remain above $6.8 billion despite strong monthly export recovery, widening annual trade gap.
ISLAMABAD: Pakistan’s trade deficit widened to around $4 billion in July 2026, as imports continued to outpace exports despite a strong monthly rebound in outbound shipments, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.
The latest figures showed that exports increased to $2.9 billion during July 2026, registering a 31% month-on-month (MoM) rise and a 10% year-on-year (YoY) increase.
Meanwhile, imports stood at approximately $6.9 billion, remaining broadly unchanged compared with June 2026 but recording an 18% increase on a yearly basis.
As a result, Pakistan posted a trade deficit of about $4.0 billion during July 2026. On a monthly basis, however, the trade gap narrowed from $4.6 billion recorded in June 2026, reflecting the strong recovery in exports. Compared with July 2025, the trade deficit increased by 25%.
The PBS data indicate that while exports showed encouraging momentum at the start of the new fiscal year, the continued strength in import demand kept the external trade balance under pressure.
The improvement in exports was driven by a sharp monthly increase in shipments, helping reduce the trade gap from the previous month. However, imports remained significantly higher than exports, underscoring Pakistan’s continued reliance on imported goods, raw materials and industrial inputs.
Economists believe export growth will need to remain sustained over the coming months to offset higher import demand and support the country’s external account. They also note that international commodity prices, exchange rate stability and domestic industrial activity will remain key factors influencing Pakistan’s trade performance during fiscal year 2026-27.
The trade figures come as policymakers continue efforts to boost exports through industrial support measures, improved market access and trade facilitation, while managing import growth to maintain external sector stability.