Pakistan's trade deficit narrows 20% MoM in August 2026

September 03, 2026 (MLN): Pakistan's trade deficit narrowed sharply by 19.69% month-on-month (MoM) to $3.17bn in August 2026, compared to $3.95bn in July 2026, as both exports and imports declined during the month, with imports falling at a steeper pace, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

On a year-on-year (YoY) basis, however, the trade deficit expanded by 10.38% from $2.87bn recorded in August 2025, adding pressure on the external account.

Monthly Performance:

Exports in August 2026 fell to $2.51bn, registering a 15.01% MoM decline compared to $2.95bn in July 2026.

Imports fell to $5.68bn, down 17.69% MoM from $6.90bn in July. The steeper decline in imports, relative to the fall in exports, was the primary driver of the narrower monthly trade gap.

As a result, the trade deficit narrowed to $3.17bn during the month.

Yearly Performance:

On a YoY basis, exports rose by 3.81% from $2.42bn in August 2025.

Imports rose by 7.38% YoY from $5.29bn, and since import growth outpaced the rise in exports, the trade deficit widened to $3.17bn, up 10.38% from $2.87bn in the same month last year.

Cumulative Trend (July–August 2026):

During the first two months of FY27, total exports stood at $5.46bn, marking a 7.04% increase YoY compared to $5.10bn in the corresponding period of FY26.

Meanwhile, cumulative imports rose 13.03% YoY to $12.58bn, up from $11.13bn last year.

Consequently, the cumulative trade deficit widened to $7.12bn, showing an 18.11% increase compared to $6.03bn in the corresponding period of FY26.

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