- Official data shows rising strain on external account balance.
- Imports climb 8.1% to $45.5bn in July-February FY26 period.
- Economists warn deficit may pressure rupee and reserves.
ISLAMABAD: Pakistan’s merchandise trade deficit surged by 25% year-on-year to reach $25 billion during the first eight months of the current fiscal year, as imports remained more than twice the value of exports.
The latest official figures released on Monday underscored mounting pressure on the country’s external account, signalling renewed stress on its balance of payments position, The News reported.
Figures released by the Pakistan Bureau of Statistics showed imports during July-February FY26 rose 8.1% to $45.5 billion, while exports dropped 7.3% to $20.46bn, leaving the import bill more than double the country’s goods sales abroad.
The gap continued to widen in February 2026, with the monthly trade deficit expanding 4.6% year-on-year to $2.98bn. Exports fell 8.76% from a year earlier to $2.27bn, while imports reduced 1.6% to $5.25bn.
On a month-on-month basis, the slowdown was sharper. February exports plunged 25.6% from January’s $3.05bn, while imports declined 9.5% from $5.8bn.
The services sector offered limited relief. The services trade deficit widened 14% to $2.07bn in July-January FY26, compared with $1.82bn a year earlier, even as exports rose 18.78% to $5.66bn. Services imports climbed 17.5% to $7.7bn over the same period.
In January alone, the services deficit grew 5.1% year-on-year to $304.8 million. Services exports jumped 31% to $885m, but imports outpaced at $1.189bn, up 23.3%.
In the last fiscal year (FY25), the services trade deficit had narrowed 15.8% to $2.62bn, driven by a 9.2% rise in services exports to $8.4bn, compared with a modest 2% increase in imports to $11bn.
Economists say the expanding goods deficit, driven by subdued 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.
