Pakistan's trade deficit narrows 28.5pc in Jan 2026

Pakistan's trade deficit narrowed sharply by 28.53 percent month-on-month (MoM) to $2.725 billion in January 2026, compared to $3.813bn in December 2025, as the country's exports surpassed $3 billion threshold for the first time, reported 24NewsHD TV channel on Tuesday.

According to data released by the Pakistan Bureau of Statistics (PBS), the improvement was driven by a sharp surge in exports alongside a significant decline in imports.

On a year-on-year (YoY) basis, however, the trade deficit contracted by only 6.61% from $2.918bn in January 2025, as both exports and imports showed mixed performance.

Exports in January 2026 surged to $3.061billion, crossing the $3 billion mark for the first time in Pakistan's trade history, registering a strong 34.96% MoM increase compared to December, signaling a notable recovery in outbound trade.

Imports, meanwhile, declined to $5.786bn, down 4.85% MoM, helping to significantly narrow the monthly trade gap.

The YoY comparison revealed modest improvements in Pakistan's external trade position.

Exports increased 3.73% YoY from $2.951bn in January 2025, while imports decreased by 1.41% YoY from $5.869bn, resulting in a lower trade deficit of $2.725bn.

During the first seven months of FY26, exports totaled $18.195bn, down 7.09% YoY, while imports rose 9.42% YoY to $40.233bn.

As a result, the cumulative trade deficit widened significantly to $22.038bn, marking a 28.22% increase compared to the same period last year.

Despite the positive monthly performance in January, the data emphasize ongoing structural challenges for Pakistan's trade sector.

While the month showed encouraging signs with record-breaking exports and falling imports, the cumulative trend continues to reflect pressure on the country's balance of payments.

Reporter: Ashraf Khan