Pakistan’s external trade position showed short-term improvement in May 2026 as the trade deficit narrowed, driven mainly by a decline in imports and a slight increase in exports.
According to data released by the Pakistan Bureau of Statistics (PBS), the country’s trade deficit stood at $2.58 billion in May 2026, reflecting a notable monthly contraction.
The improvement was primarily supported by a reduction in imports alongside modest export growth during the month.
On a yearly comparison, the deficit also showed a decline, but the broader fiscal trend remains under pressure.
During the first eleven months of FY2025–26, the cumulative trade deficit widened to $34.7 billion, indicating continued structural imbalance in external accounts.
Over this period, imports increased by nearly 6% to $62.66 billion, while exports declined by 5.6% to $27.9 billion, keeping the overall trade gap elevated.
In May alone, exports reached $2.705 billion, showing slight growth compared to the same period last year, while imports fell to $5.28 billion, easing monthly pressure on the external account.
Overall, the data reflects a temporary improvement in trade dynamics, although longer-term figures continue to highlight persistent import-led pressure on Pakistan’s external sector.
