Pakistan’s trade deficit widens 18.1 pc to $7.12 billion in first two months of FY27

New Delhi, Sep 6 (AHN) Pakistan’s trade deficit widened 18.1 per cent year-on-year to $7.12 billion during the first two months of the 2026-27 fiscal year, as imports grew at a significantly faster pace than exports, according to data released by the Pakistan Bureau of Statistics (PBS).

The trade gap stood at $6.03 billion during the corresponding period of the previous fiscal year. The widening deficit reflects continued pressure on Pakistan’s external trade balance, with the growth in imports outpacing the increase in exports.

According to the PBS data, Pakistan’s imports rose 13 per cent year-on-year to $12.58 billion during July-August 2026, compared with $11.13 billion in the same period last year. In contrast, exports increased by 7 per cent to $5.46 billion from $5.10 billion a year earlier.

On a month-on-month basis, however, the trade deficit narrowed in August. The deficit fell 19.7 per cent to $3.17 billion in August from $3.95 billion in July.

The monthly decline was largely driven by a sharp fall in imports. Imports dropped 17.7 per cent month-on-month to $5.68 billion in August from $6.89 billion in July. Exports also declined during the month, falling 15 per cent to $2.51 billion from $2.95 billion in July.

Despite the month-on-month improvement, Pakistan’s trade deficit in August remained higher than a year earlier.

The deficit increased 10.4 per cent year-on-year from $2.87 billion recorded in August 2025, as per the data cited by Qatar Tribune.

Exports in August rose 3.8 per cent year-on-year to $2.51 billion from $2.42 billion in the same month last year. Imports, meanwhile, climbed 7.4 per cent to $5.68 billion from $5.29 billion, underscoring the continued pressure from the import side.

The latest figures come at a time when Pakistan is seeking to strengthen its external account position as part of its broader economic reform programme. The persistent gap between imports and exports remains a key challenge for the country’s external stability and foreign exchange position.

The government has been pursuing measures aimed at boosting exports, expanding into new international markets and controlling non-essential imports. However, the latest two-month data shows that export growth has yet to keep pace with rising import demand.