- Official data show growing tension on the external accounts balance.
- Imports climb 8.1% to $45.5 billion in July-February FY26.
- Economists warn that the deficit could put pressure on the rupee and reserves.
ISLAMABAD: Pakistan’s merchandise trade deficit jumped 25 per cent year-on-year to $25 billion in the first eight months of the current fiscal year as imports remained more than double the value of exports.
The latest official figures published on Monday highlighted growing pressure on the country’s external account, signaling renewed tension on its balance of payments situation, News reported.
Figures released by the Pakistan Bureau of Statistics show that imports between July and February FY26 rose 8.1 percent to $45.5 billion, while exports fell 7.3 percent to $20.46 billion, leaving the import bill more than double the country’s sales of goods abroad.
The gap continued to widen in February 2026, with the monthly trade deficit increasing by 4.6% year-on-year to $2.98 billion. Exports fell 8.76 percent from a year earlier to $2.27 billion, while imports fell 1.6 percent to $5.25 billion.
From one month to the next, the slowdown was more marked. February exports plunged 25.6% from January’s $3.05 billion, while imports fell 9.5% from January’s $5.8 billion.
The service sector offered limited relief. The deficit in services trade widened by 14 per cent to $2.07 billion in July-January FY26 from $1.82 billion a year earlier, even as exports increased by 18.78 per cent to $5.66 billion. Imports of services rose 17.5% to $7.7 billion over the same period.
In January alone, the services deficit increased by 5.1% year-on-year to $304.8 million. Services exports jumped 31% to $885 million, but imports topped $1.189 billion, up 23.3%.
In the last financial year (FY25), the services trade deficit narrowed by 15.8% to $2.62 billion, driven by a 9.2% rise in services exports to $8.4 billion, compared to a modest 2% increase in imports to $11 billion.
Economists say the growing goods deficit, driven by weak export dynamics and resilient import demand, could strain foreign exchange reserves and keep pressure on the rupee unless export competitiveness improves or import squeeze deepens.
