Pakistan's trade deficit narrows 15% MoM to $3.9bn in July

August 05, 2026 (MLN): Pakistan's trade deficit narrowed by 15.22% month-on-month (MoM) to $3.95 billion in July 2026, compared to $4.66bn in June 2026, as exports recorded a sharp recovery during the month.

The improvement was driven by a significant surge in exports alongside a slight dip in imports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

On a year-on-year (YoY) basis, the trade deficit expanded by 25.17% from $3.15bn recorded in July 2025, continuing to keep pressure on the external account.

Monthly Performance:

Exports in July 2026 rose to $2.94bn, registering a 31.09% MoM increase compared to $2.24bn in June 2026.

Imports declined slightly to $6.89bn, down 0.17% MoM from $6.90bn in June.

The sharp rise in exports, combined with the marginal fall in imports, was the primary driver of the narrowing monthly trade gap. As a result, the trade deficit contracted to $3.95bn during the month.

Yearly Performance:

On a YoY basis, exports grew by 9.54% from $2.68bn in July 2025.

Imports rose by 17.99% YoY from $5.84bn, and the higher growth in imports relative to export gains resulted in the trade deficit increasing to $3.95bn, up 25.17% from $3.15bn in the same month last year.

Commenting on the latest trade figures, Adviser to the Finance Minister on Economic and Financial Reforms Khurram Schehzad said the July performance shows the positive impact of the government's export promotion policies and marks a strong start to fiscal year 2026-27.

He said exports increased by more than 31% over the previous month, while the trade deficit narrowed by over 15%, indicating improving momentum in the external sector.

According to Khurram Schehzad, the July trade performance provides an encouraging early indication of the policy direction outlined in the FY27 Budget, which prioritises exports, competitiveness, lower cost of doing business and private sector-led sustainable growth.

He added that exports reached $2.94bn during the month, recording one of the strongest month-on-month increases in recent years and a 9.5% increase over the same month last year, while broadly stable imports helped improve the country's overall trade position.

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