Trade gap swells 18pc to $7.1bn

Over the opening two months of FY27, the trade deficit grew by more than 18 per cent to $7.1 billion, as imports outpaced exports. Figures from the Pakistan Bureau of Statistics, released on Thursday, showed the July-August gap was up from $6.03 billion in the same period last year. According to Dawn, the widening shortfall could strain an economy already facing more than $26 billion in external debt servicing this fiscal year.

Imports rose 13 per cent to $12.58 billion over the two months, while exports climbed 7 per cent to $5.46 billion. Costlier oil and food imports, which the report linked to the Gulf war, added to the strain. August offered some relief, as the gap narrowed 19.7 per cent to $3.17 billion from $3.95 billion in July, although it stayed 10.4 per cent wider than a year earlier.

In FY26, the trade deficit of $39.5 billion was covered by $41.5 billion in remittances, yet the current account still closed with a $139 million deficit. August imports fell 17.7 per cent to $5.68 billion, while exports dropped 15 per cent to $2.51 billion.