Trade Deficit Decade-High: Imports Outpace Exports in FY26 as Deficit Touches $39.6 Billion

ISLAMABAD — Pakistan Bureau of Statistics (PBS) has officially released the finalized fiscal data for FY2025-26, revealing that the country’s trade deficit has expanded to a staggering $39.6 billion—the highest level recorded in over a decade. Driven by a continuous surge in energy imports and global commodity prices, overall imports climbed to $69.7 billion, representing an 8.1% year-on-year increase. In contrast, total export earnings remained stagnant at $30.14 billion, significantly missing the commerce ministry’s baseline target of $35.3 billion. Financial experts warn that the widening trade gap will put intense pressure on foreign exchange reserves in early FY27.