Pakistan’s trade deficit surges 20% YoY to $3.9bn in October 2026

Pakistan's trade deficit expanded by nearly 20% in October 2026, reaching $3.88 billion compared to $3.24 billion in October 2025, according to data from the Pakistan Bureau of Statistics. The trade deficit grew on the year due to higher imports and weaker export growth. Export figures for October 2026 were $2.93 billion, up 2.8% from $2.85 billion in October 2025.

However, imports surged by nearly 12% to $6.81 billion, compared to $6.09 billion in the same period last year. On a month-on-month basis, the trade deficit rose over 10% in October 2026, reaching $3.52 billion, up from $3.24 billion in October 2025. The increase in imports occurred while exports remained flat. In the first four months of the fiscal year 2026-27, the trade deficit rose by nearly 16% to $14.63 billion from $12.61 billion in the same period last year.

Imports increased over 12% to $25.96 billion, while exports grew 8% to $11.34 billion. Pakistan heavily depends on imports for essentials like fuel, machinery, chemicals, and food, with petroleum products accounting for a significant portion of the import bill. Automobile imports have also risen. Meanwhile, Pakistan's exports are largely consumer-based and traditional products such as rice, raw cotton, textiles, and leather.

The country's manufacturing sector is primarily focused on low-value-added goods. Exports have been negatively affected by high energy tariffs, rising taxes, expensive financing, policy uncertainty, and declining competitiveness.