By Ayesha Saba

Pakistan’s merchandise exports got off to a positive start in FY2026-27, rising more than 7% in July-August from the same period last year, while the monthly trade deficit narrowed sharply in August compared with July, according to the latest data from the Pakistan Bureau of Statistics (PBS).

Exports reached $5.459 billion during July-August 2026, up 7.04% from $5.100 billion in the corresponding period of 2025, showing continued year-on-year improvement in overseas shipments.

The August figures also showed that exports remained ahead of their level a year earlier. Pakistan exported goods worth $2.508 billion in August 2026, compared with $2.416 billion in August 2025, representing an increase of 3.81%.

In rupee terms, August exports stood at Rs696.408 billion, up 1.93% from Rs683.209 billion in the same month last year.

Another positive development came from the month-on-month trade balance. Pakistan’s trade deficit fell 19.69% to $3.170 billion in August from $3.947 billion in July 2026.

The decline came as both exports and imports eased from their July levels. Exports fell 15.01% from $2.951 billion in July to $2.508 billion in August, while imports declined faster, down 17.69% to $5.678 billion from $6.898 billion.

In rupee terms, the monthly trade deficit contracted 19.77% from about Rs1.100 trillion in July to Rs882.336 billion in August.

Yearly, however, imports continued to grow faster than exports. Imports stood at $5.678 billion in August 2026, up 7.38% from $5.288 billion in August 2025. This pushed the monthly trade deficit above its year-earlier level of $2.872 billion, widening the deficit 10.38% to $3.170 billion.

The cumulative figures showed a similar contrast between stronger exports and faster import growth. Imports during July-August 2026 reached $12.575 billion, increasing 13.03% from $11.125 billion in the corresponding period of 2025.

As a result, the cumulative trade deficit rose 18.11% to $7.116 billion from $6.025 billion a year earlier.

In rupee terms, the July-August exports increased 4.92% to Rs1.517 trillion, while imports rose 10.93% to Rs3.499 trillion.

The August trade snapshot therefore presents a mixed but encouraging export picture. While cumulative and monthly overseas shipments remained above last year’s levels, the sizeable month-on-month drop in imports helped narrow the monthly trade deficit sharply from July.

Credit: INP-WealthPk