Islamabad, March 2, 2026 – Pakistan’s trade deficit surged by 25% to $25.04 billion during the first eight months (July–February) of fiscal year 2025-26, compared to $20 billion in the same period last year, official data revealed on Monday.
According to the Pakistan Bureau of Statistics (PBS), exports declined by 7.30% to $20.46 billion during July–February 2025-26, down from $22.07 billion in the corresponding months of the previous fiscal year. Meanwhile, imports increased by 8.06% to $45.50 billion, compared with $42.11 billion in the same period of FY25.
February 2026 trade deficit trends
• Year-on-Year (YoY): The trade deficit widened by 4.63% as exports fell 8.76% and imports declined 1.61% compared to February 2025.
• Month-on-Month (MoM): The deficit jumped 8.40% as exports dropped 25.63% and imports fell 9.51% compared to January 2026.
Impact and analysis
Economists said the widening trade gap reflects both a slump in exports and surging import costs, particularly for energy, machinery, and raw materials. Persistent trade deficits may pressure the country’s foreign exchange reserves, influence the rupee’s stability, and affect monetary policy decisions in the coming months.
Officials highlighted that the government is focusing on export diversification and import rationalization to curb the deficit and stabilize macroeconomic indicators. However, global commodity prices, domestic production capacity, and geopolitical uncertainties could continue to influence the trade balance.
The latest PBS data underscores the urgency for policy measures aimed at promoting exports, managing imports, and addressing structural issues in Pakistan’s trade sector to achieve sustainable economic growth.