Pakistan’s trade deficit widens 39% to $12.7bn in July–October as exports drop and imports rise

Pakistan’s trade deficit expanded to $12.7 billion in the first four months of FY26, recording a 39% year-on-year increase as declining exports and higher petroleum imports drove up the gap, according to an advance release of external trade data issued by the Pakistan Bureau of Statistics (PBS).

Exports fell 4% year-on-year to $10.4 billion during July–October FY26, while imports rose 15.5% to $12.7 billion, resulting in the wider shortfall. 

In October 2025, exports declined 4.5% year-on-year, but increased 14% month-on-month to reach $2.8 billion. Imports in October rose 21.65% year-on-year and 4.84% month-on-month to $6.13 billion.

During the four-month period, food exports dropped 35%, driven mainly by a steep decline in rice shipments. Rice exports fell 46.4%, including a 39% drop in Basmati and a 49.65% fall in IRRI-6 & IRRI-9 rice. 

Vegetable exports declined 41%, while tobacco exports were down 28.5%. Only two food categories recorded growth: fish and fish preparations up 12.8%, and fruit up 11.78%.

Textile exports—the country’s largest export segment—rose 4% in July–October FY26. Within the textile group, exports of tents, canvas and tarpaulin increased 32.34%, knitwear rose 8.23%, cotton yarn by 7.74%, non-cotton yarn by 7.50%, bedwear by 6.94%, and readymade garments by 5.11%.

However, exports of cotton cloth declined 12.75%, towels decreased 0.28%, and art, silk and synthetic textiles fell 0.98%.

Outside textiles, carpet, rug and mat exports declined 12%, tanned leather fell 2.45%, while leather products slipped 0.34%. Sports goods exports rose 17.74%, with football exports up 26%, while gloves exports were down 9.18%. Footwear exports edged up 1.12%.

Imports during July–October FY26 saw a notable increase in petroleum-related products. Petroleum product imports rose 10.47%, while petroleum crude increased 13.57%. Imports of LNG fell 29.18%. Within the textile-related import group, synthetic fibre imports jumped 37%, and worn clothing increased 12%.

In October FY26, knitwear exports increased 3.27% month-on-month, though they fell 0.80% year-on-year. Readymade garment exports rose 12.46% month-on-month and 3.73% year-on-year, while bedwear exports increased 1.04% month-on-month and 7.25% year-on-year.

Major imports in October included petroleum crude, which surged 79.84% year-on-year and 0.15% month-on-month, while petroleum products increased 38% year-on-year and 33.6% month-on-month. Palm oil imports rose 19% year-on-year but declined 10% month-on-month. Iron and steel scrap imports increased 17% year-on-year and 9% month-on-month.

Imports of motor cars (CKD/SKD) rose sharply by 155% year-on-year and 12.73% month-on-month, while mobile phone imports declined 16% year-on-year and 27.5% month-on-month.