Pakistan’s trade deficit widened by 20 percent year-on-year to $3.9 billion in October 2026 as imports continued to grow much faster than exports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
The country’s trade gap also increased by 10 percent month-on-month compared with $3.5 billion in September.
Imports reached $6.8 billion during October, increasing by 12 percent year-on-year and 6 percent month-on-month. In comparison, exports stood at $2.9 billion, showing a modest 3 percent annual increase while remaining unchanged from the previous month.
Compared with October last year, Pakistan spent around $719 million more on imports, while export earnings increased by only $81 million. This widening difference pushed the monthly trade deficit to approximately $3.9 billion.
Trade Deficit Widens 16% in First Four Months of FY27
Pakistan’s cumulative trade deficit reached $14.6 billion during the first four months (July-October) of FY27, marking a 16 percent increase from $12.6 billion recorded in the corresponding period last year.
Imports during the four-month period rose 13 percent year-on-year to $26 billion, while exports increased 9 percent to $11.3 billion.
The latest figures extend the trend seen during the first quarter of FY27, when Pakistan’s trade deficit had already increased by around 15 percent.
The widening gap indicates that import growth continues to outpace export earnings, increasing Pakistan’s requirement for foreign exchange to finance international trade.
A larger trade deficit can add pressure to the country’s external account and foreign exchange reserves. It can also affect the rupee and increase the cost of imported goods, including fuel, medicines, electronics and industrial raw materials.
