Trade Deficit Expansion: Massive $35 Billion 11-Month Import Imbalance Strains SBP Forex Buffers

KARACHI — Despite the State Bank of Pakistan (SBP) inching closer to its fiscal year foreign exchange reserve target of $18 billion, a surging trade deficit is threatening to erase recent remittance gains. Fresh financial data reveals that Pakistan’s trade deficit for the first 11 months of FY2025-26 has climbed by 17.48% to reach an alarming $34.76 billion, up from $29.58 billion during the same period last year. The total import bill scaled to $62.66 billion due to an unexpected spike in luxury items and grain procurement. Macroeconomic managers warn that with substantial foreign creditor payments due this month, the widening trade imbalance could heavily pressure the Pakistani Rupee and expand the FY27 current account deficit.