Pakistan's exports cross $3bn mark, trade deficit narrows 28.5% in Jan

February 02, 2026 (MLN):  Pakistan's trade deficit narrowed sharply by 28.53% month-on-month (MoM) to $2.725 billion in January 2026, compared to $3.813bn in December 2025, as the country achieved a historic milestone with exports surpassing the $3 billion threshold for the first time.

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

On a year-on-year (YoY) basis, however, the trade deficit contracted by only 6.61% from $2.918bn in January 2025, as both exports and imports showed mixed performance.

Monthly Performance:

Exports in January 2026 surged to $3.061bn crossing the $3 billion mark for the first time in Pakistan's trade history registering a strong 34.96% MoM increase compared to December, signaling a notable recovery in outbound trade.

Imports, meanwhile, declined to $5.786bn, down 4.85% MoM, helping to significantly narrow the monthly trade gap.

Yearly Performance:

The YoY comparison revealed modest improvements in Pakistan's external trade position.

Exports increased 3.73% YoY from $2.951bn in January 2025, while imports decreased by 1.41% YoY from $5.869bn, resulting in a lower trade deficit of $2.725bn.

Cumulative Trend (July – January FY26):

During the first seven months of FY26, exports totaled $18.195bn, down 7.09% YoY, while imports rose 9.42% YoY to $40.233bn.

As a result, the cumulative trade deficit widened significantly to $22.038bn, marking a 28.22% increase compared to the same period last year.

Despite the positive monthly performance in January, the data emphasizes ongoing structural challenges for Pakistan's trade sector.

While the month showed encouraging signs with record-breaking exports and falling imports, the cumulative trend continues to reflect pressure on the country's balance of payments.

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