ISLAMABAD: Pakistan’s merchandise exports recorded single-digit growth in the first four months of the current fiscal year (FY27), while the trade deficit widened on the back of rising imports, the Pakistan Bureau of Statistics (PBS) reported on Friday.

In absolute terms, export proceeds stood at $11.34 billion in July-October 2026, up from $10.45bn in the corresponding period last year, an increase of 8.52 per cent.

Export growth has slowed mainly in the Middle Eastern and European markets since the war in the Middle East. An export market worth over $1.5bn in Afghanistan has also remained closed since October 2025.

Finance ministry officials are working on various measures to promote exports, particularly those of small and medium enterprises. Exporters have been complaining about the high cost of doing business owing to elevated energy prices.

Imports surge 12.59pc in four months, pushing trade deficit to $14.63bn

In October, export proceeds recorded a meagre growth of 2.84pc to $2.93bn, compared to $2.85bn in the corresponding month last year. This indicates a slowdown in the country’s export proceeds.

On a month-on-month basis, export proceeds recorded growth of 0.21pc compared to September 2026.

In FY26, Pakistan’s merchandise exports not only missed the annual target by $4.87bn but also contracted.

Export proceeds for the FY26 stood at $30.13bn, declining by 5.97pc from $32.04bn recorded in the previous year.

The planning ministry had earlier projected that export proceeds would climb to $60bn by 2030, a target that has largely remained confined to official documents. More recently, however, the ministry revised the projection upwards, setting a fresh target of $100bn to be achieved by 2035.

The export sector had already been under pressure since February due to the conflict in the Middle East. Disruptions in the Strait of Hormuz have pushed up shipping costs for exporters and disrupted supply chains. Exports to Afghanistan have also remained suspended since October 2025, affecting one of Pakistan’s major export markets.

Trade deficit

According to PBS data, imports surged 12.59pc to $25.96bn in 4MFY27, compared to $23.06bn in the corresponding period last year.

In October, the import bill rose by 11.81pc to $6.81bn, compared to $6.08bn in the corresponding month last year. On a month-on-month basis, imports increased by 5.72pc. In FY26, the import bill grew by 7.89pc to $69.59bn, up from $64.51bn in FY25.

The trade deficit rose 15.97pc to $14.63bn in 4MFY27, from $12.62bn in the corresponding period last year. In October, the trade deficit increased by 19.70pc to $3.87bn, against $3.24bn in the corresponding month last year.

The trade deficit widened by 21.57pc to $39.47bn in FY26, up from $32.46bn the previous year. For FY25, it widened by 9pc to $26.27bn, up from $24.11bn in FY24.

Published in Dawn, November 7th, 2026