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Pakistan's Exports Decline 7.14% as Trade Deficit Widens to $32B

Pakistan's exports declined 7.14% in the first three quarters of FY26, reaching Rs6.39 trillion. The trade deficit is expected to widen to $32 billion as imports surge despite government measures. Pakistan has hiked petrol and diesel prices by Rs15 per litre amid the West Asia conflict. The IMF is set to provide over $1.2 billion under its ongoing loan programme to Pakistan.

Key Points: Pakistan Exports Drop 7.14%, Trade Deficit Hits $32B

  • Exports fell 7.14% to Rs6.39 trillion in FY26 first three quarters
  • Trade deficit expected to hit $32 billion
  • Petrol and diesel prices hiked by Rs15 per litre
  • IMF to provide over $1.2 billion under ongoing loan programme
  • Remittances expected to slow due to Gulf retrenchments
2 min read

Pakistan's exports continue to decline, trade deficit widens

Pakistan's exports fell 7.14% in FY26 first three quarters, widening trade deficit to $32B. Fuel price hikes and IMF loan details emerge amid economic slump.

"Trade deficit is anticipated to be one of the biggest concerns as imports have surged despite government's corrective measures - The Express Tribune report"

New Delhi, May 9

Pakistan's exports in the first three quarters of FY26 reached Rs6.39 trillion, a 7.14 pr cent decline in rupee terms compared to the previous year, widening the trade deficit to new heights, according to a new report.

The report in The Express Tribune says that a slump in economic growth amid the adverse regional situation is set to impact balance of payments as the fiscal year comes to an end.

"Trade deficit is anticipated to be one of the biggest concerns as imports have surged despite government's corrective measures, with exports failing to rise. The gap is supposed to be as high as $32 billion, as 'managed exchange rate' has not bred the desired results," according to the report.

In more trouble, the equity market has also witnessed massive outflows amid closure of several multinational firms.

This, according to the report, "negates the prolific efforts of the government to attract FDI, throw open the country's mineral base for exploration, and utilise the country's geo-strategic location as pivot for connectivity".

Pakistan's total annual imports were on the rise driven by purchases for fuels, electrical equipment and edible oils.

Meanwhile, amid the ongoing West Asia conflict, Pakistan has again hiked petrol and diesel price by around 15 rupee per litre each. As per the official notification issued by Pakistan's Ministry of Energy (Petroleum Division), the price of petrol has been increased from PKR 399.86 to PKR 414.78, while the high-speed diesel (HSD) price has gone up from PKR 399.58 to PKR 414.58 per litre.

According to the report, remittances are also expected to slow down in the wake of retrenchments and deportations from the Gulf states, "sliding it into an abyss of discomfort".

Also, the International Monetary Fund (IMF) will reportedly give more than $1.2 billion to Pakistan under its ongoing loan programme.

- IANS

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Reader Comments

S
Sneha F
It's sad to see our neighbour struggling like this. The remittance slowdown from Gulf countries will hit hard—many families depend on that money. And with petrol prices rising again, common man will suffer the most. Governments need to stop blaming others and focus on real economic reforms.
A
Aditya G
The irony is that they have such huge potential—minerals, geo-strategic location—but mismanagement keeps pulling them down. Meanwhile, India is pushing ahead with manufacturing exports. Kal ko agar Pakistan stable hoga, toh dono countries ka business badh sakta hai. Tab tak... 😐
T
Tanya I
IMF giving another $1.2 billion—this is like putting a band-aid on a bullet wound. They need structural changes, not just loans that increase debt. And the closures of multinational firms show that business confidence is at an all-time low. Hope they learn from our economic journey. 🙏
R
Rohit L
Ye trade deficit waali baat seriously concerning hai. $32 billion ka gap? That's almost half of their total exports. And with imports of fuel and machinery still rising, it's a vicious cycle. I think they need to focus on value-added exports instead of relying on raw materials and remittances.
M
Manish T
I'm no economist, but common sense says: if your imports are more than exports, you're in trouble. And hiking petrol prices during a global crisis is like adding salt to the wound. The common man in Pakistan must be really struggling. Politics aside, we should wish them well.

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