- Exports drop deepens reliance on imported goods.
- May trade deficit narrows as imports decline, exports rise.
- Services exports growth trims deficit.
ISLAMABAD: Pakistan’s goods trade deficit widened 17.48% to $34.758 billion in the first eleven months of FY26 as falling exports and rising imports underscored continued pressure on the external account, even as monthly data showed tentative signs of stabilisation, official figures showed Wednesday.
Data from the Pakistan Bureau of Statistics showed imports rose 5.94% to $62.66 billion during July-May, while exports fell 5.6% to $27.9 billion compared with $29.56 billion a year earlier, leaving the country heavily reliant on imported goods and raw materials.
In May 2026, the monthly trade deficit narrowed 13.7% year-on-year to $2.58 billion as exports edged up 1.26% to $2.71 billion and imports declined 6.6% to $5.287 billion, suggesting some cooling in domestic demand.
The services trade deficit offered some relief, narrowing 17.4% to $2.04 billion in July-April FY26 as services exports rose 17.7% to $8.3 billion, outpacing an 8.6% rise in imports.
In April alone, the services gap contracted sharply to $26.1 million from $163 million a year earlier, driven by a 21.7% jump in exports to $915 million and a 2.8% decline in imports.
Analysts said the services sector, particularly IT and business services, remains one of the few consistent bright spots in Pakistan’s external accounts, though they cautioned that its scale is still insufficient to offset the large goods trade imbalance.
Originally published in The News
