Pakistan trade deficit widens April 2026 imports exceed exports FY26
ISLAMABAD – Pakistan’s merchandise trade deficit surged to $4.07 billion in April 2026, the highest monthly gap since June 2022, as a sharp rise in imports continued to outpace export growth .
The Pakistan Bureau of Statistics (PBS) reported on May 4 that imports climbed 7.5% year-on-year to 6.55billion,whileexportsrose142.48 billion . On a month-on-month basis, the deficit ballooned 43.5% from $2.84 billion in March 2026 .
Cumulative Deficit Widens
For the first ten months of Fiscal Year 2025-26 (July–April), the cumulative trade deficit expanded by 20.3% to 31.98billion,comparedto26.59 billion in the same period last year .
Cumulative exports fell 6.25% year-on-year to 25.21billion,whileimportsrose6.9457.19 billion during July-April .
Drivers of the Gap
The widening trade gap is attributed to two factors: rising global oil prices due to the Middle East conflict and the easing of import restrictions, which has boosted demand for raw materials, machinery, and energy products .
The oil import bill has nearly tripled from approximately 300millionto800 million per week following the closure of the Strait of Hormuz . According to the Pakistan Institute of Development Economics (PIDE), if oil prices reach 160perbarrel,Pakistan′stradedeficitcouldexpandto41.8 billion .
Services Trade
The services trade deficit narrowed 6.7% to 2.15billionduringJuly−March,withservicesexportsup177.35 billion, though this was partially offset by an 11% rise in services imports to $9.5 billion .
Analysts warn the widening deficit could strain foreign exchange reserves and pressure the rupee in the coming months
