ISLAMABAD, Jan 27 (ABC): Pakistan’s merchandise trade deficit widened sharply in December FY26 as exports fell steeply while imports stayed high. The Monthly Trade Report issued by the Trade Development Authority of Pakistan (TDAP) shared the data.
Exports record sharp decline
TDAP data shows that goods exports dropped by 20.41 percent in December. Export earnings fell to $2.317 billion. In the same month last year, exports stood at $2.911 billion. The sharp fall reduced overall export receipts.
Imports remain elevated
Imports remained high during the month. Pakistan imported goods worth $6.022 billion in December. This marked a 2 percent increase from $5.904 billion in December FY25. Continued import demand kept pressure on the trade balance.
Trade deficit widens year-on-year
Lower exports and steady imports widened the trade deficit. The deficit reached $3.705 billion in December FY26. In December last year, the deficit stood at $2.993 billion. This shows a clear year-on-year increase.
First half of FY26 shows weaker trend
During July to December FY26, exports also remained under pressure. TDAP data shows exports declined by 8.70 percent to $15.184 billion. In the same period last year, exports stood at $16.631 billion.
Imports rise in first half of fiscal year
Imports increased during the first half of FY26. Pakistan imported goods worth $34.388 billion from July to December. This compares with $30.902 billion in the same period last year. Higher imports added to the trade gap.
Cumulative trade deficit expands
As a result, the cumulative trade deficit widened further. The deficit reached $19.204 billion during July–December FY26. Last year, the deficit stood at $14.271 billion during the same period.
Sector trends and services trade
The report notes that export declines spread across several sectors in December. At the same time, imports stayed high due to energy products, consumer goods, and industrial inputs. Services trade showed a relatively better performance, but it failed to offset pressure from the goods trade deficit.