Trade Deficit Worsens Again After Poor Exports

As imports continued to grow faster than exports, pakistan's trade deficit widened by 16 percent year-on-year (YoY) to $14.6 billion during the first four months (July-October) of FY27.

Key points

• During July-October 2026, Pakistan's cumulative trade deficit reached $14.6 billion, compared with $12.6 billion in the corresponding period last year.
• Imports reached $6.8 billion in October, rising 12 percent YoY and 6 percent month-on-month (MoM).
• The monthly trade deficit additionally climbed by 10 percent compared with September's $3.5 billion.
• Imports totalled $26 billion during the four-month period, registering 13 percent year-on-year expansion.
• Exports, meanwhile, stood at $2.9 billion, increasing by just 3 percent YoY and remaining unchanged from the previous month.

For context, the gap reached $3.9 billion in October alone, marking a 20 YoY percent growth compared with the same month last year, according to provisional data from the Pakistan Bureau of Statistics (PBS).

Notably, the monthly trade deficit additionally climbed by 10 percent compared with September's $3.5 billion. LPG Mafia Era Is Over: PM Shehbaz.

When the trade deficit stood at around $3.2 billion, import payments rose by approximately $719 million, while export earnings grew by only $81 million, compared with October 2025. First 4 Months of FY27.

Imports totalled $26 billion during the four-month period, registering 13 percent year-on-year expansion. Exports rose by 9 percent to $11.3 billion over the same period.

When the first-quarter trade deficit had already widened by around 15 percent, the latest figures extend the pressure seen earlier in the fiscal year. What the Wider Trade Deficit Means.

Meanwhile, a widening trade deficit means Pakistan is spending more foreign exchange on imports than it earns through exports. This increases the country's need for dollars and can add pressure to the rupee and foreign exchange reserves.

It can additionally affect the cost of imported goods, including fuel, medicines, electronics and industrial inputs, potentially increasing expenses for households and businesses.

Similar reservations over external account pressures were highlighted after the first-quarter surge in the trade deficit. Stay Connected with ProPakistani.

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Taken together, the developments around trade Deficit Worsens Again After Poor Exports point to a situation that is still moving, and the coming days should bring more clarity.