Pakistan's Trade Deficit Widens 16% to $14.6 Billion in July-October FY27

Pakistan's trade deficit widened by 16 percent year-on-year to $14.6 billion during the first four months (July-October) of FY27, as imports continued to outpace exports, according to provisional data from the Pakistan Bureau of Statistics (PBS).

In October alone, the trade gap reached $3.9 billion, marking a 20 percent year-on-year increase compared with the same month last year. The monthly deficit also rose by 10 percent compared with September's $3.5 billion.

Imports totaled $6.8 billion in October, up 12 percent year-on-year and 6 percent month-on-month. Exports stood at $2.9 billion, increasing by just 3 percent year-on-year and remaining unchanged from the previous month. Compared with October 2025, when the trade deficit was around $3.2 billion, import payments increased by approximately $719 million, while export earnings grew by only $81 million.

During July-October 2026, the cumulative trade deficit reached $14.6 billion, compared with $12.6 billion in the corresponding period last year. Imports totaled $26 billion during the four-month period, registering 13 percent year-on-year growth. Exports increased by 9 percent to $11.3 billion over the same period.

The latest figures extend the pressure seen earlier in the fiscal year, when the first-quarter trade deficit had already widened by around 15 percent. A widening trade deficit means Pakistan is spending more foreign exchange on imports than it earns through exports, increasing the country's need for dollars and potentially adding pressure on the rupee and foreign exchange reserves.

It can also affect the cost of imported goods, including fuel, medicines, electronics and industrial inputs, potentially raising expenses for households and businesses. Similar concerns over external account pressures were highlighted following the first-quarter surge in the trade deficit.