Pakistan’s trade deficit widened by 7.26% month-on-month to $3.53 billion in September 2026, compared with $3.29 billion in August, as rising imports outweighed stronger export growth. According to provisional data released by the Pakistan Bureau of Statistics (PBS), exports increased by 16.94% during the month, but imports rose by 11.47%. The deficit was also 5.43% higher than the $3.35 billion recorded in September 2025, indicating that the gap between the country’s import spending and export earnings continued to expand on an annual basis.
Exports reached $2.96 billion in September, up from $2.53 billion in August and $2.50 billion in September last year. In rupee terms, export receipts stood at Rs821.20 billion, representing an increase of 16.78% compared with August and 16.68% compared with the corresponding month of the previous year. The growth reflects stronger earnings across several export categories, particularly readymade garments, towels and rice. However, the increase in exports was not sufficient to offset the larger value of imports.
Imports rose to $6.49 billion in September from $5.82 billion in August, while remaining 11.01% higher than the $5.85 billion recorded in September 2025. In local currency terms, imports amounted to Rs1.803 trillion, compared with Rs1.619 trillion in August and Rs1.649 trillion a year earlier. The resulting monthly trade shortfall stood at Rs981.79 billion, up from Rs916.07 billion in August and Rs945.07 billion in September 2025. The data show that the increase in the value of imported goods continued to place pressure on Pakistan’s trade balance despite improved export performance.
The cumulative figures for the first quarter of fiscal year 2026-27 show a wider external trade gap. Exports during July to September reached $8.45 billion, up 11.13% from $7.60 billion in the same period of FY26. Imports, however, increased by 13.20% to $19.21 billion from $16.97 billion. Consequently, the trade deficit expanded by 14.87% to $10.77 billion, compared with $9.37 billion in the corresponding period last year. In rupee terms, exports rose by 9.09% to Rs2.345 trillion, while imports increased by 11.23% to Rs5.343 trillion. The quarterly trade deficit reached Rs2.998 trillion, compared with Rs2.653 trillion a year earlier.
Textiles continued to account for a substantial share of Pakistan’s export earnings during September, although performance varied across individual products. Knitwear remained the largest earner among the reported textile categories, generating Rs132.59 billion, up 1.45% month-on-month and 1.23% year-on-year. Readymade garments generated Rs109.86 billion, increasing by 7.81% compared with August and 18.51% against September 2025. Bed wear exports rose 13.08% month-on-month to Rs80.08 billion but remained 1.11% lower than a year earlier. Cotton cloth exports increased 10.54% over the month to Rs41.33 billion, although they declined 2.20% year-on-year. Towels recorded stronger performance, rising 18.33% month-on-month and 15% annually to Rs27.85 billion. Cotton yarn exports, by contrast, fell 29.53% from August to Rs18.42 billion, despite remaining 3.43% higher than in September 2025.
Rice was among the strongest-performing export categories. Basmati rice exports reached Rs31.12 billion, increasing by 27.85% month-on-month and 168.88% year-on-year. Exports of other rice varieties climbed to Rs41.18 billion, up 42.24% from August and 131.18% compared with September last year. Combined receipts from the two categories exceeded Rs72 billion during the month. Petroleum product exports, excluding top naphtha, also increased sharply to Rs21.35 billion, more than doubling from the previous month and recording year-on-year growth of 117.38%. The rise in these categories contributed to the overall improvement in export earnings.
On the import side, energy products remained a major component of Pakistan’s monthly import bill, although petroleum products and crude oil recorded contrasting movements. Petroleum product imports increased by 22.74% month-on-month and 42.62% year-on-year to Rs163.17 billion. Crude oil imports, meanwhile, declined by 28.47% from August and 5.78% from September 2025 to Rs143.90 billion. Together, the two categories accounted for roughly 17% of total imports during September. The figures indicate that higher spending on refined petroleum products was accompanied by a reduction in crude oil imports.
Several industrial and consumer-related import categories also recorded increases. Iron and steel imports rose 60.50% month-on-month and 31.12% year-on-year to Rs80.85 billion, while iron and steel scrap imports increased by 23.75% over the month and 37.86% annually to Rs69.06 billion. Plastic materials imports climbed 28.03% month-on-month and 31.22% year-on-year to Rs87.31 billion. Imports of motor cars in completely knocked-down and semi-knocked-down form reached Rs68.15 billion, up 46.45% from August and 59.53% from September 2025, the strongest annual increase among the ten leading import items highlighted in the data.
Other major import categories showed mixed results. Palm oil imports rose 27.28% month-on-month to Rs96.31 billion but remained 5.34% below their year-earlier level. Electrical machinery and apparatus imports declined 9.11% over the month to Rs77.49 billion, although they were 4.75% higher year-on-year. Raw cotton imports fell 10.62% month-on-month to Rs42.04 billion but increased 8.54% annually. Mobile phone imports reached Rs39.75 billion, up 6.95% from August but down 29.23% compared with September 2025.
The September trade figures highlight the challenge of narrowing Pakistan’s external trade gap when imports grow faster than exports over the cumulative period. Although export earnings improved across several important categories, including garments and rice, the overall value of imports remained substantially higher. The wider deficit during the first quarter of FY27 reflects this imbalance. Future trade data will show whether stronger export receipts can gain further momentum and reduce the gap between imports and exports in the remaining months of the fiscal year.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.