Trade deficit narrows 39% as imports fall

KARACHI: Pakistan’s merchandise trade deficit narrowed sharply by 39.5% in May 2026 compared to April, helped by higher exports and a significant decline in imports, according to data from the Pakistan Bureau of Statistics.

The trade gap fell to Rs721.6 billion in May from Rs1.19 trillion a month earlier, marking an improvement of about Rs470.4 billion and easing pressure on the external sector.

Exports rose 9.5% month-on-month to Rs753.7 billion from Rs688.7 billion in April, while imports dropped 21.6% to Rs1.48 trillion from Rs1.88 trillion.

Compared to May 2025, the trade deficit decreased 14.4% from Rs842.5 billion. Exports remained almost unchanged at Rs753.7 billion, while imports declined 7.5% from Rs1.59 trillion.

Despite the monthly improvement, the cumulative trade deficit for July–May FY2025-26 widened 18.3% to Rs9.78 trillion from Rs8.26 trillion in the same period last year, highlighting persistent external sector challenges.