Exports increase 11pc amid soaring deficit

Dawn reported that Pakistan's merchandise exports rose 10.84 per cent in the first quarter of FY27, covering July to September, according to the Pakistan Bureau of Statistics. Export proceeds reached $8.43 billion, compared with $7.59 billion in the same stretch of the previous year. Shipments in September alone climbed 17.61 per cent to $2.94 billion, while proceeds rose 16.07 per cent on a monthly basis.

Imports, however, increased 13.21 per cent to $19.22 billion over the quarter, which lifted the trade deficit 15.13 per cent to $10.79 billion. In September the gap widened 6.15 per cent to $3.55 billion, while the FY26 import bill reached $69.59 billion.

Exports had contracted during FY26, falling 5.97 per cent to $32.04 billion and missing the annual target by $4.87 billion. Dawn also noted that exporters face high costs, thin margins and slow refunds, and that Strait of Hormuz disruption linked to the Middle East conflict has raised shipping costs. Shipments to Afghanistan have also been suspended since October 2025.