Pakistan Trade Deficit Widens to 14.6 Billion Dollars
Pakistan's trade deficit grew 16 percent to 14.6 billion dollars in the first four months of the fiscal year as imports outpaced export growth.
The Pakistan Bureau of Statistics reported that Pakistan's trade deficit widened by approximately 16 percent to 14.6 billion dollars during the first four months of the current fiscal year, rising from 12.6 billion dollars in the same period last year. Imports grew by over 12 percent to roughly 26 billion dollars, while exports increased by 8.5 percent to 11.4 billion dollars.
In October 2026, the trade gap surged nearly 20 percent year-on-year to approximately 3.88 billion dollars. During that month, imports reached 6.8 billion dollars against exports of 2.93 billion dollars, marking a 10.3 percent increase in the deficit from September.
To address sluggish export growth, the Government of Pakistan maintained 88 billion PKR in subsidies for cheaper loans to large exporters. Despite these measures, current projections for goods exports of 34 billion dollars for the fiscal year indicate the country will miss its 2029 target of 60 billion dollars. Planning Minister Ahsan Iqbal Chaudhary identified the 60 billion dollar milestone as necessary to avoid future IMF programs. Analysts warn that the widening gap may pressure foreign exchange reserves and the current account if global energy prices remain high.
