Pakistan’s trade deficit recorded a significant decline in May 2026, mainly due to a sharp drop in imports, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The country’s trade deficit stood at $2.58 billion in May 2026, compared to $2.99 billion in May 2025, reflecting a 13.7 percent year-on-year decrease.
On a month-on-month basis, the improvement was even more noticeable. The deficit narrowed by 39.4 percent from $4.26 billion in April 2026, largely because imports fell by 21.5 percent during the month.
Despite the improvement in May, the overall trade gap for the current fiscal year remains higher than last year.
During the first 11 months of FY26 (July–May), Pakistan’s cumulative trade deficit reached $34.7 billion, an increase of 17.5 percent compared to $29.5 billion recorded during the same period of FY25.
Over the July–May period, total imports rose nearly 6 percent year-on-year to $62.66 billion, while exports declined 5.6 percent to $27.9 billion.
In May 2026 alone, exports totaled $2.705 billion, showing a modest 1.3 percent increase compared to the same month last year.
Meanwhile, imports fell to $5.28 billion, down 6.6 percent year-on-year, helping reduce the monthly trade deficit.
Economists will be closely watching whether the decline in imports reflects temporary factors or signals a broader slowdown in domestic demand and economic activity.
