- Official data show growing pressure on the external account balance.
- Imports increase 8.1% to $45.5 billion in the July-February period of FY26.
- Economists warn that the deficit could put pressure on the rupee and reserves.
ISLAMABAD: Pakistan’s merchandise trade deficit rose 25% year-on-year to $25 billion during the first eight months of the current fiscal year as imports remained more than double the value of exports.
The latest official figures released on Monday underlined the growing pressure on the country’s external account, indicating renewed strain on its balance of payments position. The news reported.
Figures released by the Pakistan Bureau of Statistics showed that imports during July-February FY26 rose 8.1% to $45.5 billion, while exports fell 7.3% to $20.46 billion, leaving the import bill at more than double the country’s sales of goods abroad.
The gap continued to widen in February 2026, with the monthly trade deficit expanding 4.6% year-on-year to $2.98 billion. Exports fell 8.76% from a year earlier to $2.27 billion, while imports fell 1.6% to $5.25 billion.
On a month-on-month basis, the slowdown was more pronounced. February exports fell 25.6% from $3.05 billion in January, while imports fell 9.5% from $5.8 billion.
The service sector offered limited relief. The services trade deficit widened 14% to $2.07 billion in July-January FY26, compared to $1.82 billion a year earlier, even as exports rose 18.78% to $5.66 billion. Service imports rose 17.5% to $7.7 billion over the same period.
In January alone, the services deficit grew 5.1% year-on-year to $304.8 million. Services exports increased 31% to $885 million, but imports topped $1,189 million, an increase of 23.3%.
In the last fiscal year (FY25), the services trade deficit had narrowed 15.8% to $2.62 billion, driven by a 9.2% rise in services exports to $8.4 billion, compared to a modest 2% rise in imports to $11 billion.
Economists say the growing goods deficit, driven by weak export momentum and resilient import demand, could strain foreign exchange reserves and keep pressure on the rupee unless export competitiveness improves or import compression deepens.
