Pakistan’s goods trade deficit widened to $3.56 billion in September, despite a significant rebound in exports, as the country’s import bill continued to grow faster in absolute terms.
According to data from the Pakistan Bureau of Statistics (PBS), the September trade deficit increased 6% from $3.35 billion recorded in the same month last year.
The gap also widened compared with August, when it stood at $3.29 billion. On a month-on-month basis, September’s deficit was around 8% higher.
Exports Rebound to $2.94 Billion
Pakistan’s exports rose to $2.94 billion in September, increasing 17.6% from $2.5 billion during the same month of the previous year.
The increase represents a notable improvement in overseas sales following a period in which export growth had struggled to gain sustained momentum.
However, the improvement in exports was not enough to offset the larger increase in imports.
Exports increased by approximately $440 million year-on-year, while imports rose by around $640 million.
The difference between those increases resulted in a wider monthly trade gap.
Imports Continue to Outpace Exports
Imports reached $6.49 billion in September, up 11% from $5.85 billion a year earlier.
While the percentage increase in exports was higher than the growth rate of imports, the import bill remains substantially larger in dollar terms.
This distinction is important for understanding the widening trade deficit. A faster percentage increase in exports does not necessarily narrow the deficit when the country’s import base is considerably larger and imports add more dollars to the overall trade bill.
First Quarter Trade Deficit Reaches $10.79 Billion
The July-September period shows a similar trend on a larger scale.
During the first quarter of fiscal year 2026-27, Pakistan’s trade deficit increased to $10.79 billion, up 15% from $9.37 billion during the corresponding period of the previous fiscal year.
Exports during the quarter reached $8.42 billion, compared with $7.59 billion a year earlier, representing an 11% increase.
Imports, meanwhile, climbed to $19.22 billion from $16.97 billion, registering 13% growth.
Import Growth Adds More Dollars to the Gap
The quarterly figures provide a clearer picture of the pressure on Pakistan’s external trade position.
During the first three months of FY27, imports increased by approximately $2.25 billion.
Exports increased by around $830 million over the same period.
As a result, the increase in imports exceeded the increase in exports by roughly $1.4 billion, contributing to the wider quarterly trade deficit.
What the September Trade Data Shows
The September figures do not indicate a collapse in Pakistan’s exports.
Overseas sales improved significantly, with exports rising 17.6% year-on-year during the month. The increase suggests that exporters are generating stronger external sales compared with the same period last year.
The challenge is that imports are growing from a much larger base and are adding more dollars to the trade account.
Both sides of Pakistan’s goods trade are therefore expanding, but imports are currently increasing at a pace that is keeping the overall deficit on an upward path.
Trade Deficit Remains a Key External-Sector Indicator
The widening trade gap will remain an important indicator for Pakistan’s external-sector position.
Higher imports can reflect increased domestic demand, industrial activity and requirements for machinery, raw materials and other goods. At the same time, sustained export growth is important for generating foreign exchange and narrowing the structural gap between imports and exports.
For businesses, the September data presents a mixed picture: export orders and overseas sales are improving, but the gains have not yet been sufficient to offset the rising import bill.