Economy
Pakistan’s trade deficit reached its highest level in nearly four years in April 2026, raising fresh concerns about the country’s fragile external finances.The monthly trade gap climbed to $4 billion in April — a 46-month high — as rising imports continued to outpace export growth.
According to data released by the Pakistan Bureau of Statistics (PBS), exports recovered to $2.48 billion in April, a 14% increase year-on-year. However, that improvement was overshadowed as imports surged 7.46% to $6.55 billion, pushing the trade deficit up nearly 4% compared to the same month last year.
For the first ten months of FY26 (July–April), the total trade deficit expanded 20% to $32 billion. Imports during this period climbed nearly 7% to $57.2 billion, while exports fell more than 6% to $25.2 billion — a gap that economists warn could drain foreign exchange reserves and put sustained pressure on the rupee.
Trade analysts point to disruptions in the Strait of Hormuz as a contributing factor, noting that higher shipping costs and weakened regional demand have added pressure on Pakistan’s export sector throughout the current fiscal year. One area of relief was services trade: in March 2026, the monthly services trade deficit shrank by 81% year-on-year to just $22.9 million, with services exports growing 16% to $903 million. Analysts, however, caution that this alone is insufficient to offset the broader merchandise trade imbalance.