PAKISTAN’S export crisis is not only an issue of expensive electricity, high taxes or difficult global conditions but also a story of an economy struggling to earn enough internationally and imports continues to outpace the exports. The widening trade deficit exposes a deeper weakness: Pakistan has yet to build an export model capable of competing consistently on value, productivity, product diversity and market reach. Pakistan’s merchandise trade deficit widened by 18.11 percent year on year to $7.1 billion. The latest figures have made the picture more troubling.

According to the Pakistan Bureau of Statistics, Pakistan’s trade deficit widened to $10.77 billion in July–September FY2026–27, up from $9.37 billion a year earlier. Although exports grew by 11.13% to $8.45 billion but faster import growth further expanded the trade gap. Imports, however, climbed 13.20 percent to $19.21 billion from $16.97 billion. The resulting deficit stood at around $10.77 billion, nearly 15 percent wider than the previous year’s level. September offered some improvement in export performance. Shipments reached $2.96 billion, an increase of 18.49 percent from September 2025, while imports rose 11.01 percent to $6.49 billion. Yet the monthly trade deficit still reached $3.53 billion.

A single month of improved performance cannot offset the persistent quarterly trade imbalance. Pakistan needs sustained export growth across multiple sectors to finance its import bill. Otherwise, faster........

© Pakistan Observer