Pakistan’s exports fall 5.61% to $27.91 billion in 11MFY26, trade deficit widens 17.48% to over $34 billion

Pakistan’s merchandise exports declined 5.61% to $27.91 billion during the first 11 months of FY2025-26, compared with $29.56 billion in the same period last year, while the trade deficit widened 17.48% amid higher imports, according to data released by the Pakistan Bureau of Statistics (PBS).

The country’s import bill rose 5.94% to $62.66 billion during July-May FY2025-26, against $59.15 billion in the corresponding period of last year.

As a result, the trade deficit increased to $34.76 billion in 11MFY26, compared with $29.58 billion in the same period last year.

In May, exports showed a month-wise recovery, rising 1.26% year-on-year to $2.71 billion from $2.67 billion in May last year.

On a month-on-month basis, export proceeds increased 9.59% in May.

Imports declined 6.63% year-on-year to $5.28 billion in May, compared with $5.66 billion in the same month last year.

Month-on-month, imports fell 21.45%.

The trade deficit for May narrowed 13.68% to $2.58 billion from $2.99 billion in the corresponding month of last year.

Exports have remained under pressure for most of the current fiscal year.

After a 16.43% year-on-year increase in July, export growth turned negative from August onwards, except for January and April.

Export proceeds declined 12.49% in August, 3.88% in September, 4.46% in October, 14.54% in November and 20.41% in December.

Exports rose 3.3% in January before falling again by 8.76% in February and 14.4% in March.

In April, exports recovered 14.03% year-on-year before posting a smaller increase in May.

The export sector has also faced pressure from the Middle East conflict since February, with disruptions around the Strait of Hormuz pushing up shipping costs and affecting supply chains.

Trade analysts said a prolonged Gulf conflict could continue to affect exports by disrupting trade routes, weakening demand in key regional markets and adding uncertainty to global supply chains.

In FY2025, export proceeds had increased 4.67% to $32.106 billion from $30.675 billion in FY2024.

The trade deficit for FY2025 had widened 9% to $26.27 billion, compared with $24.11 billion in the preceding year.

PBS data also showed that imports had risen 6.57% to $58.38 billion in July-January FY2025 from $54.78 billion a year earlier.