Pakistan’s trade deficit increased to $10.8 billion in the first quarter of fiscal year 2026-27 (1QFY27), marking a 15 percent year-on-year increase from $9.37 billion recorded in the corresponding period last year, according to data compiled by Topline Research.

The wider trade gap came as imports expanded at a faster pace than exports in dollar terms. Imports rose 13 percent year-on-year to $19.2 billion during the quarter, while exports increased 11 percent to $8.4 billion from $7.6 billion in 1QFY26.

The rise in imports added around $2.2 billion to the quarterly import bill, compared with an increase of approximately $824 million in export earnings.

September also recorded a sizeable monthly trade gap of $3.6 billion, up 6 percent year-on-year and 8 percent month-on-month.

Imports during the month amounted to $6.5 billion, showing an 11 percent increase from September 2025 and a 12 percent rise compared with August 2026.

Exports reached $2.9 billion in September, registering stronger growth of 18 percent year-on-year and 16 percent month-on-month.

Despite the increase in exports, the larger expansion in imports pushed the monthly deficit higher. The gap rose from $3.35 billion in September 2025 and $3.29 billion in August 2026 to $3.56 billion in September.

The monthly trade deficit has remained at elevated levels since the beginning of FY27. It was around $3.8 billion in July, narrowed to $3.3 billion in August and widened again to $3.6 billion in September.