Pakistan’s trade deficit widened in the first quarter of FY2026-27 despite a notable rise in exports, according to Pakistan Bureau of Statistics data. Exports increased 10.84 percent to USD 8.42 billion, while imports surged 13.21 percent to USD 19.21 billion, pushing the deficit up 15.13 percent to USD 10.79 billion.

Mian Zahid Hussain, President of PBIF and Chairman of the National Business Group Pakistan, said September exports rose to USD 2.93 billion from USD 2.50 billion last year, but imports climbed to USD 6.49 billion, widening the monthly gap to USD 3.55 billion. He noted that higher petroleum prices due to the US-Iran war had inflated the import bill, while essential imports like machinery and raw materials remained critical for industry.

He warned that if the quarterly deficit persists, the full-year gap could reach USD 43.2 billion, against projected remittances of USD 44 billion. Remittances, though vital, cannot directly offset the merchandise deficit, leaving limited room to absorb external shocks.

Hussain stressed the need for sustainable export growth, diversification of products and markets, and value addition to strengthen competitiveness. He urged the government to ensure reliable energy supplies, promptly clear tax refunds, and simplify customs and port procedures. Predictable policies on taxation, tariffs, and energy are essential to reduce uncertainty for exporters.