Pakistan’s trade deficit increased to $3.98 billion in July 2026, rising 26.1% compared with the $3.15 billion deficit recorded in the same month of the previous year, according to provisional data released by the Pakistan Bureau of Statistics (PBS). The latest figures show that the country’s import bill continued to exceed export earnings by a wide margin at the beginning of FY27, although the monthly trade gap narrowed compared with June 2026.
The trade deficit declined by 14.6% on a month on month basis from $4.66 billion recorded in June 2026. The improvement in the monthly trade balance came as exports recorded a significant increase during July, while imports remained broadly stable compared with the previous month. Despite the monthly improvement, the trade deficit remained substantially higher than the corresponding period of the previous year.
Pakistan’s exports reached $2.96 billion in July 2026, registering a 10.4% year on year increase from $2.68 billion in July 2025. The monthly performance was considerably stronger, with exports rising 32.1% from $2.24 billion recorded in June 2026. The increase indicates a significant expansion in export shipments at the beginning of the new fiscal year.
In rupee terms, exports during July amounted to Rs823.55 billion. This represented an 8.0% increase from Rs762.58 billion recorded in July 2025. Compared with June 2026, exports in rupee terms increased by 31.95% from Rs624.16 billion.
Textile products remained prominent among Pakistan’s major export commodities during July. Knitwear generated export receipts of Rs148.41 billion, making it the largest export commodity listed in the PBS data. Readymade garments followed with exports worth Rs127.89 billion, while bed wear contributed Rs85.77 billion.
Other major export commodities included cotton cloth at Rs39.36 billion, rice other than basmati at Rs34.36 billion and towels at Rs29.57 billion. Madeup articles, excluding towels and bed wear, generated Rs21.47 billion, while basmati rice contributed Rs21.27 billion. Petroleum products excluding top naphtha accounted for Rs21.03 billion, followed by cotton yarn at Rs18.50 billion.
The export figures indicate that textile and agricultural products continued to account for a substantial share of Pakistan’s merchandise export receipts. Knitwear, readymade garments and bed wear collectively generated a significant portion of the total export value recorded during the month.
On the import side, Pakistan’s import bill increased by 18.9% year on year to $6.94 billion in July 2026, compared with $5.84 billion in July 2025. On a month on month basis, imports increased only marginally by 0.6% from $6.90 billion in June 2026.
In rupee terms, imports reached Rs1.93 trillion in July 2026, compared with Rs1.66 trillion during the same month of the previous year. This represents a year on year increase of 16.46%. Compared with June, imports in rupee terms increased by 0.47% from Rs1.92 trillion.
Electrical machinery and apparatus represented the largest import commodity during July, with imports valued at Rs153.00 billion. Petroleum crude followed at Rs143.92 billion, while petroleum products accounted for Rs136.83 billion. Palm oil imports amounted to Rs99.93 billion, while plastic materials stood at Rs90.53 billion.
Other major imports included iron and steel worth Rs87.22 billion and iron and steel scrap worth Rs67.82 billion. Motor cars under completely knocked down and semi knocked down categories accounted for Rs52.30 billion, while raw cotton imports reached Rs51.88 billion. Natural gas in liquefied form contributed Rs49.18 billion to the import bill.
The composition of imports shows continued demand for energy products, industrial inputs, machinery and consumer related goods. Petroleum crude and petroleum products together represented a substantial portion of the monthly import bill, while electrical machinery, plastics, metals and raw cotton also accounted for significant import expenditure.
The difference between exports of $2.96 billion and imports of $6.94 billion resulted in the $3.98 billion trade deficit during July. Although exports grew strongly on both annual and monthly comparisons, the faster increase in the value of imports on a year on year basis kept the merchandise trade gap elevated.
The July data also highlights a notable change from June. Exports increased by more than 32% month on month, while imports rose by only 0.6%. As a result, the monthly trade deficit narrowed by nearly 15%. However, the annual increase in imports remained considerably higher than the annual growth in exports, contributing to the 26.1% expansion in the trade deficit compared with July 2025. Overall, Pakistan began FY27 with merchandise exports of $2.96 billion and imports of $6.94 billion, producing a provisional trade deficit of $3.98 billion. The figures released by PBS show stronger export activity compared with June, but also point to continued pressure from the country’s import bill, particularly through petroleum, machinery and industrial commodities.
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