ISLAMABAD: Pakistan’s merchandise exports showed signs of recovery in April after two consecutive months of decline, but the trade deficit remained elevated due to a surge in imports and relatively slower growth in export proceeds.

The rebound in April exports offered some relief. However, it was not sufficient to offset the widening gap caused by higher import payments, the Pakistan Bureau of Statistics (PBS) said on Monday.

Trade analysts say the persistent rise in imports, driven by demand for energy and industrial inputs, continues to outpace export earnings, keeping pressure on the external account.

In April, exports grew 14.03pc to $2.48 billion, compared with $2.17bn in the corresponding month last year. On a month-on-month basis, export proceeds increased by 9.5pc.

Trade deficit widens to $31.98bn in 10MFY26

Negative export growth has persisted since August of the current fiscal year, except in July, when exports grew by 16.43pc year on year. Export earnings have posted negative growth, with proceeds declining by 20.41pc in December.

This follows a 14.54pc drop in November, 4.46pc in October, 3.88pc in September, and 12.49pc in August, reflecting persistent pressures on the country’s external trade performance.

However, exports rose 3.3pc in January but contracted 8.76pc in February and 14.4pc in March.

In the 10 months (July-April), export proceeds recorded negative growth of 6.25pc, falling to $25.21bn from $26.89bn in the corresponding period last year.

Three months ago, the government announced several measures, including a reduction in energy rates, to minimise pressure on the country’s trade performance.

The export sector had already been under pressure since February due to the conflict. The disruptions in the Strait of Hormuz have pushed up shipping costs for exporters and disrupted supply chains.

Analysts warn that the ongoing war in the Middle East could undermine export performance, particularly by disrupting trade routes, dampening demand in key regional markets, and adding uncertainty to global supply chains.

In FY25, export proceeds rose 4.67pc to $32.106bn against $30.675bn in the preceding year.

Trade deficit

According to the PBS data, imports rose 7.46pc year-on-year and 28.41pc month-on-month to $6.55bn in April. In 10MFY26, the import bill grew by 6.94pc to $57.19bn $53.48bn in the corresponding period last year.

The trade deficit widened by 3.82pc to $4.07bn in April from $3.92bn over the corresponding month of last year. It, however, swelled 20.28pc to $31.98bn in July-April 2025-26 from $26.59bn a year ago. The trade deficit for FY25 widened by 9pc to $26.27bn against $24.11bn in the preceding year.

Published in Dawn, May 5th, 2026