Pakistan’s trade deficit widened by 15.97 percent to 14.63 billion dollars in the first four months of the current fiscal year, as exports fell and imports rose, according to figures from the Pakistan Bureau of Statistics.
The figures cover July to October 2026, the first four months of fiscal year 2025-26. The deficit stood at 14.63 billion dollars, up from 12.616 billion dollars in the same period last year, an increase of 15.97 percent year on year.
Exports during the four months were 10.47 billion dollars, down 4.35 percent from 10.947 billion dollars a year earlier. Imports, meanwhile, rose 6.65 percent to 25.1 billion dollars, up from 23.563 billion dollars. The gap between what Pakistan buys from the world and what it sells widened because imports grew while exports shrank.
October alone showed a sharper deterioration. The deficit for the month was 3.81 billion dollars, up 24.35 percent compared with October last year and up 22.35 percent from 3.113 billion dollars in September. October exports were 2.67 billion dollars, down 7.27 percent year on year, while imports rose 9.44 percent to 6.48 billion dollars.
The trade deficit is the difference between the value of goods a country imports and the value it exports, and a widening deficit means more foreign currency is leaving the country to pay for imports than is coming in from exports. For Pakistan, which has faced repeated pressure on its foreign exchange reserves, the direction of the deficit is closely watched by policymakers, businesses and lenders.
The four-month figures show the pressure coming from both sides of the ledger. Export earnings fell by more than four percent, suggesting weaker demand for Pakistani goods abroad or difficulties for exporters, while the import bill rose by more than six percent, adding to the outflow.
October’s monthly jump is the most striking part of the data. A deficit of 3.81 billion dollars in a single month, more than a fifth higher than September, points to a sharp monthly swing rather than a gradual drift, and the fall in October exports alongside rising imports explains the scale of the increase.
The figures will feed into the government’s economic planning for the rest of the fiscal year. Policymakers will be looking at whether the export decline can be reversed and whether import growth can be contained without hurting industry and consumers who depend on imported fuel, machinery and raw materials.
For now, the data shows a trade gap that is growing rather than narrowing. The coming months will show whether the October spike was a one-off or the start of a wider trend in Pakistan’s external trade.
