Pakistan’s trade deficit stands at $2.7bn in January 2026

Pakistan recorded a trade deficit of $2.7 billion in January 2026, according to the latest data released by the Pakistan Bureau of Statistics (PBS), reflecting a narrower gap compared to the previous month amid higher exports and lower imports, as compiled by Arif Habib Limited.

Exports during the month amounted to $3.1 billion, marking a 3.7% increase year-on-year compared to January 2025. On a month-on-month basis, exports registered a sharp 35.0% rise, recovering from lower levels recorded in December 2025. The increase lifted monthly export proceeds above the $3 billion mark, contributing to a moderation in the trade gap for the month under review.

Imports, meanwhile, declined to $5.8 billion in January 2026. This represented a 1.4% decrease on a year-on-year basis compared to the same month last year. On a month-on-month basis, imports fell by 4.9%, indicating a reduction in the overall import bill compared to December 2025, when imports had crossed $6 billion.

As a result of these movements, the monthly trade deficit narrowed to $2.7 billion, compared to $3.8 billion in December 2025, according to PBS figures. The contraction reflects the combined impact of rising exports and easing imports during the month.

On a cumulative basis, however, the trade balance remained under pressure. During the first seven months of fiscal year 2026 (7MFY26), Pakistan’s trade deficit widened to $22.0 billion, posting an increase of 28.2% year-on-year. This compares with a trade deficit of $17.2 billion recorded in the corresponding period of the previous fiscal year.

Cumulative exports during 7MFY26 stood at $18.2 billion, compared to $19.6 billion in the same period last year. In contrast, cumulative imports rose to $40.2 billion during the period, up from $36.8 billion in 7MFY25, contributing to the wider trade gap.

The PBS data highlights contrasting trends between monthly and cumulative performance, with January showing improvement on a sequential basis, while the overall trade position for the ongoing fiscal year remains weaker compared to last year.