KARACHI: Pakistan’s merchandise trade deficit widened 22.6% year-over-year to $3.92 billion in July 2026, as imports grew significantly faster than exports at the start of the new fiscal year, according to data released by the Pakistan Bureau of Statistics.
The deficit rose from $3.2 billion in July 2025. Imports climbed 16.84% to $6.89 billion, up from $5.9 billion a year earlier.
Exports also grew, rising 10.01% year-over-year to $2.97 billion in July 2026 from $2.7 billion in the same month last year. However, the pace of import growth outweighed export gains, widening the trade gap and adding pressure to Pakistan’s external account.
Textile exports, the country’s largest export category, rose 9.11% year-over-year to $1.83 billion in July, up from $1.68 billion a year earlier. Economists said the increase points to continued resilience in the sector despite challenging global market conditions.
Economists said stronger domestic demand and higher imports of industrial raw materials, machinery and energy products may be driving the rise in imports as economic activity recovers. They said sustained export growth, particularly in value-added textiles, will be important for containing external sector pressures in the coming months.
A persistently wider trade deficit could add pressure to Pakistan’s current account, though strong workers’ remittances and expected financial inflows may help offset some of the impact, economists said.
The July figures mark the first monthly trade data for fiscal year 2026-27. Policymakers are expected to closely monitor import growth and export performance in the coming months to maintain external sector stability.
