By Moaaz Manzoor

Pakistan's merchandise trade deficit widened sharply to $4.53 billion in June 2026, as exports declined while imports surged on both a monthly and annual basis, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

The PBS data shows that the trade gap expanded by 63.8% compared with May 2026, when it stood at $2.77 billion, and by 57.1% over June 2025, when the deficit was $2.88 billion. The sharp increase reflected a combination of falling export earnings and a substantial rise in import payments during the month.

Exports dropped to $2.24 billion in June from $2.69 billion in May, registering a 16.7% month-on-month decline. Compared with June 2025, exports were down 9.6% from $2.48 billion, indicating weaker external sales at the close of the fiscal year.

In contrast, imports climbed to $6.77 billion in June, up from $5.45 billion in May, representing a 24.1% month-on-month increase. On a year-on-year basis, imports rose 26.3% from $5.36 billion recorded in June 2025, reflecting higher spending on imports.

The same trend was reflected in rupee terms. Export receipts declined to Rs623.06 billion in June from Rs749.27 billion in May and Rs701.09 billion in June last year. Meanwhile, imports increased to Rs1.886 trillion, compared with Rs1.531 trillion in May and Rs1.516 trillion in June 2025. As a result, the trade deficit widened to Rs1.263 trillion in June, compared with Rs781.25 billion in May and Rs815.37 billion in June 2025.

Despite the sharp deterioration in June, the cumulative trade figures provide a broader picture of Pakistan's external trade performance during FY2025-26. Total exports during July-June FY2025-26 amounted to $30.13 billion, compared with $32.04 billion in the previous fiscal year, reflecting a decline of 6.0%. In rupee terms, exports fell 5.6% to Rs8.45 trillion from Rs8.95 trillion.

Imports, meanwhile, continued to grow over the course of the fiscal year. During FY2025-26, the country's import bill increased to $69.60 billion, up from $64.51 billion in FY2024-25, representing a 7.9% increase. In rupee terms, imports rose 8.5% to Rs19.55 trillion, compared with Rs18.02 trillion a year earlier.

Consequently, Pakistan's cumulative merchandise trade deficit widened to $39.47 billion during FY2025-26, compared with $32.47 billion in the preceding fiscal year, an increase of 21.6%. In local currency, the deficit expanded by 22.3% to Rs11.10 trillion, from Rs9.08 trillion recorded in FY2024-25.

In a nutshell, the June data indicate that Pakistan's merchandise exports for FY2025-26 were $30.13 billion against imports of $69.60 billion, resulting in an annual trade deficit of $39.47 billion.

Credit: INP-WealthPk