KARACHI: Pakistan’s merchandise trade deficit shrank 14% year-on-year in May 2026, driven by a steep decline in imports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
The country posted a trade deficit of $2.58 billion in May, down from $2.99 billion in the same month last year and a sharp 39% drop from April 2026’s $4.26 billion deficit.
Imports fell to $5.28 billion, a 7% decrease from $5.66 billion a year earlier and a 21% drop from $6.73 billion in April. The decline in imports was the primary factor narrowing the monthly trade gap, easing pressure on Pakistan’s external account.
Exports rose modestly to $2.70 billion in May, up about 1% from $2.67 billion in May 2025. On a monthly basis, exports increased nearly 10% from $2.47 billion in April. In rupee terms, exports stood at PKR 753.7 billion, compared with PKR 752.4 billion a year earlier and PKR 688.7 billion in April.
Despite the monthly improvement, Pakistan’s cumulative trade deficit widened during the first 11 months of fiscal year 2025-26. The trade gap reached $34.76 billion from July to May, up from $29.59 billion in the same period of the previous fiscal year.
Exports in the 11-month period fell 5% to $27.90 billion from $29.56 billion a year earlier, while imports rose 7% to $62.66 billion from $59.15 billion.
Analysts say sustained export growth and tighter controls on non-essential imports will be critical to improving Pakistan’s balance-of-payments position in the coming months.
