Pakistan’s trade deficit increased to $3.306 billion in August 2026 as imports grew at more than twice the rate of exports compared with the same month last year, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
Exports increased 5.22% year-over-year to $2.542 billion in August, while imports rose 10.59% to $5.848 billion. Compared with July, exports fell 13.86% and imports declined 15.22%.
The trade deficit in August was about 15.1% higher than the deficit recorded in August 2025 but 16.2% lower than the $3.947 billion gap recorded in July.
During the first two months of FY27, exports rose 7.73% to $5.494 billion, while imports increased 14.56% to $12.745 billion. This pushed Pakistan’s cumulative trade deficit to $7.251 billion, about 20.3% higher than during the same period last year.
In rupee terms, the trade deficit in August stood at Rs. 920.101 billion, while the deficit for July and August reached about Rs. 2.020 trillion.
Pakistan’s exports totaled $2.542 billion in August, compared with $2.951 billion in July and $2.416 billion in August 2025.
Knitwear remained the largest major export category at Rs. 130.691 billion, followed by readymade garments at Rs. 101.903 billion and bedwear at Rs. 70.816 billion.
Basmati rice exports saw a significant increase, rising 67.02% year-over-year and 14.43% from the previous month. Cotton yarn exports also grew 46.42% year-over-year and 41.33% compared with July.
However, several major export categories declined on a monthly basis, including knitwear, readymade garments, bedwear, cotton cloth and towels.
Imports stood at $5.848 billion in August, compared with $6.898 billion in July and $5.288 billion in August 2025.
Petroleum crude was the largest major import category at Rs. 201.173 billion, followed by petroleum products at Rs. 132.941 billion. Electrical machinery and apparatus accounted for Rs. 85.874 billion, while palm oil imports stood at Rs. 75.666 billion.
Crude oil imports increased 45.56% year-over-year, while petroleum product imports rose 32.54%. Raw cotton imports also increased 47.79% compared with the same period last year.
The latest figures show that although Pakistan’s exports continued to grow on a yearly basis, imports increased at a faster pace, resulting in a wider trade deficit during the first two months of FY27.
