Imports fall 5%, monthly trade deficit narrows despite annual pressures
Islamabad, Pakistan | Web Desk — Pakistan’s exports reached a historic milestone in January 2026, crossing the $3 billion mark for the first time, while imports declined, significantly narrowing the monthly trade deficit, according to official data.
Figures released by the Pakistan Bureau of Statistics (PBS) show that exports surged by 35 percent in January to $3.1 billion, marking a 3.73 percent increase compared to the same month last year. During the same period, imports fell by 5 percent to $5.8 billion.
As a result, the monthly trade deficit dropped to $2.7 billion, reflecting a sharp 29 percent improvement compared to previous months — a positive sign for short-term economic stability.
Advisor to the Finance Minister, Khurram Shahzad, termed the trend encouraging, stating that rising exports and falling imports signal gradual economic recovery. He added that lower energy prices and easing interest rates could further strengthen export performance in the coming months.
However, cumulative data for the first seven months of fiscal year 2025–26 presents a more challenging picture. From July 2025 to January 2026, Pakistan’s trade deficit widened by 28 percent, rising from $17 billion to over $22 billion year-on-year.
During this period, total exports declined by 7 percent to $18.19 billion, while imports increased by 9.42 percent, crossing $40 billion compared to $36.77 billion in the corresponding period of the previous fiscal year.
Economic experts note that while January’s export surge is a welcome development, sustained export growth and import control remain critical to addressing long-term trade imbalance and supply-side constraints.
