{
  "id": 5468950,
  "title": "Trade gap swells 18pc to $7.1bn",
  "url": "https://urgent.news/2026/09/04/trade-gap-swells-18pc-to-7-1bn",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-04T02:03:10.000Z",
  "source": {
    "name": "Dawn Business",
    "slug": "dawn-business",
    "url": "https://www.dawn.com/news/2027328/trade-gap-swells-18pc-to-71bn"
  },
  "original_language": "en",
  "account": "In the first two months of 2026-27, Pakistan's trade gap expanded by more than 18 percent, reaching $7.1 billion, according to data from the Pakistan Bureau of Statistics. Imports increased more rapidly than exports, contributing to the widening deficit. The trade gap for the same period in the previous year was $6.03 billion.\n\nThe trend of a rapidly widening trade gap is reminiscent of last year, when the gap expanded significantly, threatening to consume all remittances. Remittances in the fiscal year 2026 amounted to $41.5 billion, while the trade deficit was $39.5 billion.\n\nThe widening deficit poses major risks for Pakistan, which is already under pressure to meet over $26 billion in external debt servicing obligations for the current fiscal year. However, a slight narrowing of the trade gap by 19.7 percent to $3.17 billion in August, down from $3.95 billion in July, offers a glimmer of hope. Yet, the deficit remains considerably higher than the previous year.\n\nIn FY26, the current account ended with a deficit of just $139 million, but this was solely possible due to unprecedented inflows of $41.5 billion in remittances. During the first two months of the current fiscal year, imports rose by 13 percent to $12.58 billion, up from $11.13 billion in the same period last year. Higher costs for oil and other essential imports, such as food, due to the Gulf war have exacerbated economic challenges for Pakistan.\n\nYear-on-year, exports in July-August increased by 7 percent to $5.46 billion, compared to $5.10 billion a year ago. However, imports fell by 17.7 percent to $5.68 billion in August, compared to $6.89 billion in July, while exports declined by 15 percent to $2.51 billion, compared to $2.95 billion in July. The August trade deficit expanded by 10.4 percent year-on-year.",
  "summary": "KARACHI: The trade gap widened alarmingly by over 18 per cent in the first two months of 2026-27, reflecting the increasing pressure of a surging import bill. The Pakistan Bureau of Statistics (PBS) data, issued on Thursday, showed that the trade deficit for July-August FY27 swelled to $7.1 billion as imports grew more sharply than exports. The trade gap stood at $6.03bn in 2MFY26. The trend…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}