ISLAMABAD – Economic concerns mount as new Pakistan Bureau of Statistics data reveal a worrisome trend: Pakistan’s trade deficit widened over 25% during the first eight months of FY2025-26.
According to the latest PBS report, the trade gap rose to $25.02 billion during July-February, up from $20.01 billion a year earlier. This widening gap is putting immense pressure on the Rupee and foreign exchange reserves.
Exports Show Modest Gains: In positive news for Pakistan’s economy, exports continued to grow. In the first eight months of FY26, exports reached $21.5 billion, up approximately 9.5% from $19.63 billion the previous year.
However, experts note that although Pakistan’s export growth is positive, it remains too slow to offset the massive influx of foreign goods.
Import Bill Outpaces Recovery. The primary driver of Pakistan’s deteriorating trade balance is the skyrocketing import bill. Total imports for the July-February period jumped to $46.52 billion, a sharp 17.3% increase from the $39.64 billion recorded last year.
The surge in the import bill of Pakistan is largely attributed to:
- High global energy and oil prices.
- Increased demand for industrial raw materials also contributes to the surge in imports.
- The ongoing Middle East crisis is affecting shipping costs.
Monthly Performance: February 2026 On a month-on-month basis, the situation remains tense. In February 2026 alone, the trade deficit reached $3.2 billion. Exports for the month totalled $2.6 billion, while imports stayed high at $5.8 billion, showing that the pressure on the national economy will likely persist in the immediate future.
What does this mean for the public? For the average Pakistani citizen, a widening trade deficit directly devalues the PKR against the US Dollar, which then spikes the cost of petrol, electricity, and imported food items.
Economic analysts are urging the government to implement stricter curbs on non-essential imports and to provide more aggressive incentives to local manufacturers to boost exports. As Pakistan continues its discussions with the IMF, bridging this trade gap will be a critical hurdle