Key facts
- Pakistan's merchandise trade deficit narrowed by 13.7% year-on-year to $2.58 billion in May.
- Imports fell 6.6% year-on-year in May.
- Exports increased by 1.3% year-on-year in May.
- For the July-May period of fiscal year 2026, the deficit widened by 17.5% year-on-year.
Pakistan's merchandise trade deficit saw a significant contraction of 13.7% year-on-year in May, settling at $2.58 billion. This improvement was largely attributed to a 6.6% decrease in imports, a move potentially influenced by the front-loading of oil purchases in the preceding month of April. Exports, meanwhile, experienced a modest uptick of 1.3% year-on-year. However, looking at the broader fiscal picture for the July-May period of fiscal year 2026, the trade deficit has expanded by 17.5% year-on-year, reflecting a period where exports weakened against a backdrop of expanding imports.