Pakistan’s exports declined 3.83% to $7.60 billion in the first quarter of FY26, while imports rose 13.49% to $16.97 billion, widening the trade deficit, according to data from the Pakistan Bureau of Statistics (PBS).
In September FY26, exports fell 11.71% year-on-year to $2.50 billion, while imports increased to $5.84 billion, pushing the monthly trade deficit to $3.34 billion—a 45.83% rise compared to September 2024.
On a month-on-month basis, exports in September rose slightly by 3.64% from $2.42 billion in August, while imports grew 10.53% from $5.29 billion, increasing the trade deficit by 16.33% MoM.
The decline in exports was largely driven by the textile sector, which accounts for roughly 60% of total export proceeds. Former All Pakistan Textile Mills Association chairman Asif Inam attributed the drop to falling international cotton prices—from $1.50 to 64 cents per pound—and higher energy costs, which squeezed profit margins. He suggested that lowering electricity rates for exporters could help textile exports reach $25 billion within two to three years.
Despite the overall decline in goods exports, services exports grew 11.73% to $1.4 billion in July-August FY26, while services imports rose 15.37% to $2.1 billion, resulting in a services trade deficit of $707 million, up 16.94% from the same period last year.
