Pakistan Trade Gap Narrows in May

Pakistan recorded a trade deficit of PKR 721.59 billion in May 2026, narrowing from PKR 842.49 billion a year earlier and easing significantly from a record shortfall of PKR 1,191.9 billion in the previous month. The May gap is equivalent to USD 2.58 billion. On a year-on-year basis, exports edged up 0.2% to PKR 753.7 billion, while imports fell 7.5% to PKR 1,475.3 billion. In contrast, April saw imports surge to a record PKR 1,880 billion, driven in part by higher global oil prices linked to tensions with Iran, underscoring Pakistan’s continued reliance on imported energy. Over the July 2025–May 2026 period, exports declined 5%, while imports increased 6.7%, widening the cumulative trade deficit by 18.3% to PKR 9,775.3 billion.

Pakistan recorded a trade deficit of PKR 1,139.2 billion in April 2026, the largest on record, equivalent to USD 4.07 billion. This compares with a gap of PKR 795.2 billion in the previous month and PKR 1,101.5 billion a year earlier. On a year-on-year basis, imports rose 7% to a record PKR 1,830.9 billion, driven in part by higher global oil prices linked to the conflict with Iran, underscoring Pakistan’s heavy reliance on imported energy. Meanwhile, exports increased 13.4% to PKR 691.6 billion. Over the July 2025–April 2026 period, the country’s trade deficit widened sharply by 21.4% to PKR 9,000 billion (USD 31.9 billion). During this period, exports fell 5.5% to PKR 7,081 billion, while imports climbed 7.9% to PKR 16,082 billion.