Pakistan’s trade deficit widened to $4 billion in July 2026, the first month of fiscal year 2026-27, as growth in imports outpaced the increase in exports, according to data released by the Pakistan Bureau of Statistics (PBS).

The trade gap increased by 25% year-on-year (YoY), although it narrowed by 15% compared with the previous month.

During July, Pakistan’s imports rose to $6.9 billion, registering an 18% YoY increase while remaining almost unchanged on a month-on-month (MoM) basis.

Exports improved to $2.9 billion, increasing 10% compared with July 2025 and jumping 31% from the previous month.

Despite stronger export performance, the faster rise in imports resulted in a higher trade deficit at the start of FY2026-27.