By Iftikhar Mashwani
ISLAMABAD: Pakistan’s external trade position deteriorated significantly in June 2026, with exports falling sharply while imports recorded a substantial increase, resulting in a widening trade deficit and renewed concerns from the business community over the country’s economic outlook.
According to data released by the Pakistan Bureau of Statistics, exports stood at $2.24 billion in June 2026, marking a decline of 16.7 percent compared to May 2026 and 9.6 percent compared to June 2025.
Meanwhile, imports rose to $6.77 billion, reflecting an increase of 24.1 percent on a monthly basis and 26.3 percent year-on-year.
As a result, Pakistan’s trade deficit widened to $4.53 billion during June 2026, an increase of 63.8 percent over May 2026 and 57.1 percent compared to the same month last year.
For the fiscal year 2025-26, exports totaled $30.13 billion, down 6 percent from the previous fiscal year, while imports climbed to $69.59 billion, up 8.1 percent. The annual trade deficit reached $39.46 billion, representing a 22 percent increase over FY2025.
Business leaders, including representatives of chambers of commerce, trade associations, small industries and women entrepreneurs, expressed concern over the widening trade gap, warning that the trend could place additional pressure on the country’s current account balance, foreign exchange reserves and overall economic stability.
They noted that high financing costs, elevated energy prices, heavy taxation and an increasingly uncompetitive business environment continue to undermine the country’s export potential and industrial growth.
The business community urged the government and the State Bank of Pakistan to take immediate corrective measures, including reducing the policy rate, lowering energy tariffs, accelerating exporters’ refunds and improving access to working capital.
They also called for a comprehensive export-led growth strategy focused on value addition, industrial productivity and investment promotion, stressing that sustainable economic growth cannot be achieved without a significant expansion in exports.
Business leaders emphasized that coordinated policy reforms are essential to boost production, create employment opportunities and strengthen Pakistan’s economic resilience in the face of growing external challenges.
