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.

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