Pakistan’s trade deficit widened by 15% year-on-year (YoY) to $10.8 billion during the first quarter of fiscal year 2026-27 (1QFY27), up from $9.37 billion in the same period last year, according to data compiled by Topline Securities.
The quarterly trade gap expansion was driven by imports growing significantly faster in absolute terms than exports.
-
Imports surged by 13% YoY to $19.2 billion during 1QFY27.
-
Exports rose by 11% to $8.4 billion, up from $7.6 billion a year earlier.
This means the import bill increased by roughly $2.2 billion during the quarter—nearly three times the $824 million increase seen in exports.
“Imports increased by around $2.2 billion during the quarter, nearly three times the approximately $824 million increase in exports, preventing strong export growth from narrowing the overall trade gap.”
Monthly Trade Gap Remains Elevated in September
The trade deficit remained under pressure in September, reaching $3.6 billion. The monthly gap increased by 6% YoY and 8% month-on-month (MoM).
-
September Imports: Stood at $6.5 billion, rising 11% from the same month last year and 12% from August 2026.
-
September Exports: Recorded strong growth, increasing 18% YoY and 16% MoM to reach $2.9 billion.
However, the robust performance in exports was not enough to offset the heavier import bill. The monthly trade deficit climbed from $3.35 billion in September 2025 and $3.29 billion in August 2026 to $3.56 billion this September.
Pakistan’s monthly trade gap has remained consistently high since the start of FY27. It registered at around $3.8 billion in July, briefly declined to $3.3 billion in August, before rebounding to $3.6 billion in September.