Exports at three-month low as Pakistan trade deficit hits $2.9B in Nov

Pakistan’s exports hit a four-month low in November as the trade deficit stood at $2.9 billion, according to official data.

The trade balance – exports minus imports – was up 33% from $2.2 billion in November 2024.

On a month-on-month basis, the deficit shrank by 11.9% from $3.2 billion in October.

Pakistan Bureau of Statistics (PBS) data showed imports stood at $5.3 billion in November, with exports lagging at mere $2.4 billion. Year-on-year, imports increased by 5.4% while exports fell by 15.4% compared to October 2024.

This was the lowest export number since $2.4 billion in August.

Month-on-month, imports fell by 13.7% and exports fell by 15.8% in November.

According to Darson Securities data, the trade deficit in the first five months of fiscal year 2026 (July-November) stood at $15.5 billion, up 37.2% year-on-year.

In September, Pakistan recorded a six-month high trade deficit as imports outstripped weak exports by $3.34 billion.

What is the impact of a trade deficit?

The gap between imports and exports has raised concerns about the country’s fragile external position, especially as Pakistan grapples with inflationary pressures, exchange rate volatility, and structural reforms under an ongoing IMF-supported program.

The imbalance highlights structural weaknesses in exports and persistent import demand, keeping pressure on Pakistan’s external account despite earlier stabilization measures.

The widening trade gap is expected to weigh on the current account. The deficit is expected to widen further in the coming months as the country will have to import food items to make up for the damage to crops due to floods.

According to estimates, Pakistan’s current account deficit is projected to widen by approximately $1.93 billion in FY26.