ISLAMABAD – Pakistan’s external account came under renewed pressure in April 2026 as the country recorded a 46-month high monthly trade deficit of $4 billion, driven mainly by a sharp rise in imports that continued to outpace export growth.
The data released by the Pakistan Bureau of Statistics showed that the trade gap widened by 4% compared to April last year and surged 44% from the previous quarter, reflecting mounting strain on the country’s external sector.
For the first 10 months of the fiscal year 2025–26, the overall trade deficit increased by 20% to $32 billion.
During the July–April period, imports rose nearly 7% to $57.2 billion, while exports declined by more than 6% to $25.2 billion, highlighting continued weaknesses in export performance amid sustained import demand.
In April alone, exports posted a 14% year-on-year increase to $2.48 billion. However, this growth was outweighed by imports, which rose 7.5% to $6.55 billion during the same month.
The services trade sector provided limited relief. During the July–March period of FY26, the services trade deficit narrowed by 6.7% to $2.15 billion, as services exports grew 17% to $7.35 billion. This improvement was partially offset by an 11% rise in services imports to $9.5 billion.
On a monthly basis, March saw a notable improvement in the services account, with the deficit shrinking by 81% year-on-year to $22.9 million, compared to $120 million in the same month last year. Services exports increased 16% to $903 million, while imports rose slightly by 3% to $925 million.
Despite some gains in services exports, Pakistan’s overall trade position remains under pressure due to persistent import growth and weak export momentum.
The analysts say the widening gap is likely to maintain pressure on the rupee and complicate efforts to stabilise the country’s external accounts in the coming months.
