Trade Deficit Swells $3.5B to $12.6B in FY26 Q1

ISLAMABAD: Pakistan’s merchandise trade deficit ballooned to $12.6 billion in the first four months of FY26, a brutal $3.5 billion leap from last year, as imports exploded to their highest in 3.5 years, per Pakistan Bureau of Statistics (PBS) data.

October imports smashed $6.1 billion—peak since March 2022. July–October tallied $23 billion, 15.1% YoY surge. Exports? $10.5 billion—4% YoY drop, more than double imports.

Economists slam the 38% deficit explosion, equaling half the IMF bailout Pakistan eyes post-50 conditions. Trade liberalization—World Bank/IMF-backed—has slashed duties on non-dutiable goods, fueling imports.

Exports slumped 4% in October—third straight monthly decline, signaling persistent weakness.