Pakistan’s trade deficit has widened to $10.8 billion in the first quarter of the new fiscal year, as imports continue to outpace export growth. The data, released by the Pakistan Bureau of Statistics (PBS), shows the gap between what Pakistan sells abroad and what it buys growing noticeably compared to last year.
The Headline Numbers
Pakistan’s trade deficit rose to $10.79 billion during July-September 2026 (1QFY27), up 15% from $9.37 billion in the same quarter last year. The increase came as imports once again grew faster than exports.
| Metric | 1QFY27 (Jul-Sep 2026) | 1QFY26 (Jul-Sep 2025) | Change |
|---|---|---|---|
| Exports | $8.42 billion | $7.6 billion | +11% |
| Imports | $19.22 billion | $16.97 billion | +13% |
| Trade Deficit | $10.79 billion | $9.37 billion | +15% |
In dollar terms, imports added about $2.2 billion to the bill during the quarter, nearly three times the roughly $824 million increase seen in exports. So even though exports grew at a healthy pace, it wasn’t nearly enough to offset the larger rise in imports.
September Alone Tells a Similar Story
The pressure wasn’t limited to the quarter as a whole. September’s trade deficit came in at $3.56 billion, up 6% from $3.35 billion a year earlier, and up 8% from August’s $3.29 billion.
- September exports: $2.94 billion, up around 17.6% year-on-year
- September imports: $6.49 billion, up around 11.1% year-on-year
Exports actually grew faster than imports in percentage terms during September. But because Pakistan’s import bill is so much larger in absolute size, even slower import growth still added more dollars to the gap than the stronger export growth could offset.
A Rising Trend Through the Quarter
Pakistan’s monthly trade gap stayed elevated throughout the first quarter of FY27:
- July: around $3.8 billion
- August: eased to around $3.3 billion
- September: rose again to $3.56 billion
This shows the deficit didn’t move in a straight line, it eased briefly in August before widening again in September.
How This Compares to Previous Years
The trade gap has been on a clear upward path over the past few years for the same July-September quarter:
| Period | Trade Deficit |
|---|---|
| Q1 FY2024-25 | ~$7.05 billion |
| Q1 FY2025-26 | $9.37 billion |
| Q1 FY2026-27 | $10.79 billion |
This follows a wider deterioration across all of FY2025-26, when Pakistan’s full-year trade deficit rose 21.6% to $39.47 billion.
The Rupee Side of the Story
In rupee terms, September’s exports reached around Rs. 815.1 billion against imports of about Rs. 1.80 trillion, leaving a monthly trade deficit of roughly Rs. 988.4 billion. For the full quarter, the rupee-denominated trade deficit crossed Rs. 3 trillion, up about 13.2% from Rs. 2.65 trillion in the same quarter last year.
Why This Matters
A widening trade deficit puts pressure on Pakistan’s foreign exchange position, since the country needs more dollars to pay for imports than it earns from exports. This gap is typically financed through remittances, foreign loans, investment inflows, or a drawdown of foreign exchange reserves, so a consistently widening deficit is something economists and policymakers watch closely as an early signal for the broader balance of payments.
What’s Driving the Gap
Based on the pattern in the data, import growth has consistently outpaced export growth over the past year, both in percentage and in absolute dollar terms. While exports have shown genuine improvement, rising double digits year-on-year in both the quarter and in September specifically, the sheer size of Pakistan’s import bill means even moderate import growth adds more dollars to the gap than strong export growth can offset.
Frequently Asked Questions
What was Pakistan’s trade deficit in the first quarter of FY2026-27?
$10.79 billion, up 15% from $9.37 billion in the same quarter last year.
How much did exports and imports grow?
Exports rose about 11% to $8.42 billion, while imports rose about 13% to $19.22 billion.
What was the trade deficit in September 2026 alone?
$3.56 billion, up 6% year-on-year and 8% from August 2026.
Is the trade deficit getting worse compared to previous years?
Yes. The same quarter’s deficit has risen from about $7.05 billion in FY2024-25, to $9.37 billion in FY2025-26, to $10.79 billion in FY2026-27.
Why does a trade deficit matter for Pakistan’s economy?
A wider deficit means Pakistan needs more foreign currency to cover its import bill than it earns from exports, adding pressure to foreign exchange reserves unless offset by remittances, loans, or investment inflows.
Pakistan’s export growth this quarter is a genuine bright spot, but it’s being outpaced by an even faster rise in imports. With the trade deficit trending upward for three straight years in this same quarter, the import-export gap remains one of the key numbers to watch in the months ahead.
