Author name: Web Desk

KARACHI: Pakistan’s external sector has come under fresh pressure as the trade deficit in goods and services surged 17% to $11.26 billion during the first four months (July-October) of FY26, reversing the gains achieved last fiscal year, according to State Bank of Pakistan (SBP) data released on Monday.The widening gap is primarily driven by a 9.6% jump in goods imports to $20.72bn and a paltry 2% increase in goods exports to $10.63bn. Services exports offered some cushion, rising to $3.03bn (up from $2.62bn), largely on the back of IT exports that climbed to $1.44bn. However, services imports also rose to $4.20bn, limiting the net benefit.October proved particularly challenging: the current account posted a $733m deficit — the highest monthly shortfall in FY26 — against just $206m in October FY25. Goods imports in the month alone touched $5.27bn, while exports slipped to $2.75bn from $3bn a year earlier.Remittances continued to act as the economy’s lifeline, growing 9.3% to $12.96bn, but failed to fully offset the deteriorating trade balance. The primary income deficit — reflecting profit repatriation and debt servicing — remained stubbornly high at $3.09bn.Although foreign direct investment fell to $748m from $1.01bn and portfolio outflows hit $537m in October, the SBP managed to lift gross reserves to $14.64bn by end-October. Analysts warn that scheduled debt repayments and sustained import momentum could quickly erode this buffer if export competitiveness is not urgently addressed.

KARACHI: PIA is expanding its Cargo Business and aims to provide efficient and competitive cargo services to its customers. A Cargo Interline Special agreement was signed between PIA and Biman Bangladesh airlines. The Cargo Agreement ill be effective from December 1, 2025. This agreement will augment trade and also streamline air cargo movement between Pakistan and Bangladesh. The partnership will also facilitate in minimizing logistical complexities in transporting commodities such as textiles, pharmaceuticals, and agricultural products. The airline will utilize key Saudi Arabian hubs that are Jeddah, Madinah, and Riyadh, as transit gateways, establishing a strategic corridor for regional trade.