April trade deficit crosses $4bn, highest since June 2022

May 04, 2026 (MLN): Pakistan's trade deficit surged to $4.07 billion in April 2026 its highest level since June 2022 jumping 43.5% month-on-month (MoM) from $2.84bn in March 2026, as a sharp spike in imports vastly outpaced a recovery in exports during the month.

The sharp deterioration was driven by a dramatic expansion in the import bill alongside only a modest rise in outbound shipments, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

On a year-on-year (YoY) basis, the trade deficit also widened by 3.82% from $3.92bn recorded in April 2025, adding to the mounting pressure on the country's external account.

Monthly Performance:

Exports in April 2026 recovered to $2.48bn, registering a 9.5% MoM increase compared to $2.26bn in March 2026, suggesting a rebound in outbound shipments following the marginal slip seen in the prior month.

Imports, however, surged far more aggressively to $6.55bn, up 28.41% MoM from $5.10bn in March.

The disproportionate jump in imports relative to the export recovery drove a dramatic widening of the monthly trade gap.

As a result, the trade deficit ballooned to $4.07bn during the month the highest since June 2022.

Yearly Performance:

On a YoY basis, exports rose 14.03% from $2.17bn in April 2025. Imports also edged up 7.46% YoY from $6.10bn, but the sharper surge in import growth relative to exports resulted in the trade deficit widening to $4.07bn, up 3.82% from $3.92 bn in the same month last year.

Cumulative Trend (July – April FY26):

During the first ten months of FY26, total exports stood at $25.21bn, marked a 6.25% decline YoY compared to $26.89 billion in the same period of FY25.

Meanwhile, cumulative imports rose 6.94% YoY to $57.20bn, up from $53.49bn last year. Consequently, the cumulative trade deficit widened sharply to $31.99bn, showing a 20.28% increase compared to $26.59bn in the corresponding period of FY25.

Despite a monthly uptick in export receipts, the unprecedented surge in imports pushed the trade deficit to a near four-year high in April, sharply amplifying the cumulative gap and reinforcing deep-rooted structural vulnerabilities in Pakistan's external sector, with sustained upward pressure on the country's balance of payments position showing no meaningful sign of abatement.

Copyright Mettis Link News