Pakistan’s Trade Deficit Surges 20.28% in First 10 Months of FY2025-26
Islamabad: Pakistan’s trade deficit widened significantly by 20.28 percent during the first ten months (July-April) of the current fiscal year, reaching $31.988 billion, according to official data released on Wednesday.Exports continued to face headwinds, declining by 6.25 percent to $25.21 billion, while imports rose by 6.94 percent to $57.198 billion during the period.The figures highlight…
Islamabad: Pakistan’s trade deficit widened significantly by 20.28 percent during the first ten months (July-April) of the current fiscal year, reaching $31.988 billion, according to official data released on Wednesday.
Exports continued to face headwinds, declining by 6.25 percent to $25.21 billion, while imports rose by 6.94 percent to $57.198 billion during the period.
The figures highlight ongoing pressure on Pakistan’s external account despite various government measures to boost exports and rationalize imports. The trade gap, which stands at nearly $32 billion for the July-April period, remains a key concern for economic policymakers and the International Monetary Fund (IMF) as the country navigates its balance of payments challenges.
Analysts attribute the rising deficit to higher import bills for essential items, including energy, machinery, and raw materials, amid recovering domestic demand. The decline in exports, meanwhile, reflects weak performance in major sectors such as textiles, leather, and rice, which are facing global demand slowdown and stiff competition.
The government has set an ambitious export target for the full fiscal year, but with only two months remaining, achieving a significant turnaround appears difficult. Economists have called for urgent structural reforms, including export diversification, improved ease of doing business, and resolution of energy sector issues to put the trade balance on a sustainable path.
