Pakistan’s merchandise exports rose 8.52 per cent to $11.34 billion in the first four months of the current fiscal year, July to October 2026, but imports grew faster and pushed the trade deficit to $14.63 billion, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday, November 6.
What happened?
The PBS released provisional trade figures for July-October 2026 (the first four months of FY2026-27). Exports stood at $11.34 billion, up from $10.45 billion in the same period last year, an increase of 8.52 per cent. Imports rose 12.59 per cent to $25.96 billion, from $23.06 billion a year earlier. Because imports grew faster than exports, the trade deficit widened by 15.97 per cent to $14.63 billion, from $12.61 billion in the corresponding period last year.
Key details
- October 2026: exports were $2.93 billion, up 2.84 per cent year on year from $2.85 billion, while imports rose 11.8 per cent to $6.81 billion. The monthly trade deficit widened 19.7 per cent to $3.88 billion, from $3.24 billion in October 2025, and was 10.3 per cent higher than September’s $3.52 billion.
- Full-year FY26: exports stood at $30.13 billion, down 5.97 per cent from $32.04 billion the previous year, while the annual trade deficit widened 21.57 per cent to $39.47 billion.
- Export growth has slowed mainly in Middle Eastern and European markets amid the war in the Middle East, and exports to Afghanistan have remained suspended since October 2025.
What it means for people in Pakistan
Export growth is good news for the country’s exporters and for foreign exchange earnings, but the faster rise in imports means Pakistan is still spending considerably more on goods from abroad than it earns from selling its own. A wider trade gap adds pressure on the external account, and the trend will be watched closely in the coming months as the government works to lift exports and manage the import bill.
