Pakistan’s exports surged to $2.94 billion in September 2026, marking a 17.6 percent increase compared to the same month last year and a 16.1 percent rise from August 2026. Despite this significant growth, a sharper increase in imports led to a widening of the country’s trade deficit, according to preliminary data released by the Pakistan Bureau of Statistics (PBS), Pakistan’s official statistics collection, analysis, and publication agency, on Friday, October 2, 2026.
The robust export performance in September was primarily driven by improvements in Pakistan’s key export sectors, particularly textiles and garments, alongside an expansion in food product exports, including rice. Media outlets in Pakistan, including The News and Business Recorder, cited the PBS’s initial figures, highlighting the export growth.
Trade Deficit Widens Despite Export Gains
While exports showed strong momentum, imports also experienced a considerable increase. Pakistan’s imports reached $6.49 billion in September 2026, an 11.1 percent rise from the previous year and an 11.5 percent increase compared to August 2026. This imbalance resulted in a trade deficit of $3.56 billion for September 2026, which is 6.2 percent higher than the deficit recorded in the same month last year.
For the first three months of the fiscal year 2026/27 (July-September), Pakistan’s total exports grew by 10.8 percent to $8.42 billion. However, imports during the same period climbed by 13.2 percent to $19.22 billion, pushing the overall trade deficit for the quarter up by 15.1 percent to $10.79 billion.
The increase in textile exports contributed significantly to the overall growth, with textile shipments rising by 5.55 percent to $3.38 billion during the first two months of FY2026/27. Within this sector, ready-made garment exports increased by 13.59 percent, and cotton yarn exports saw a substantial 34.8 percent rise.
Economic Context and Future Outlook
The export growth in September follows a period of mixed performance for Pakistan’s trade sector. Textile exports had seen a rebound in February 2026 after five consecutive months of decline. In May 2026, exports had increased by 9.59 percent to $2.70 billion, while imports had fallen by 21.45 percent to $5.29 billion, leading to a monthly trade deficit reduction of 39.43 percent to $2.59 billion.
However, the fiscal year 2025-26 (July-May) saw Pakistan’s exports decline by 5.6 percent to $27.09 billion, with imports rising by 5.94 percent to $62.66 billion, resulting in a 17.48 percent increase in the trade deficit to $34.76 billion.
In other economic news, Pakistan’s annual inflation rate stood at 10.26 percent in September 2026, an increase of 1.27 percent from August 2026, as reported by the Pakistan Bureau of Statistics (PBS) on October 2, 2026. The country’s foreign exchange reserves reached $26.8 billion in September 2026.
Looking ahead, Prime Minister Shehbaz Sharif has emphasized the government’s priority to enhance the global market access for Pakistani agricultural products, noting increased Pakistani rice exports to Malaysia. Pakistan is also working to boost its export capacity, which is expected to strengthen international trade and support economic growth. The Federal Board of Revenue (FBR) has extended the deadline for filing tax returns until October 15.
Despite the positive export figures, detailed breakdowns of specific textile products (beyond ready-made garments and cotton yarn) and types of rice contributing most to the September growth are not yet clear. Further analysis is needed on the long-term impact of the escalating trade deficit on Pakistan’s overall economic stability and currency value, as well as the government’s specific strategies to control the rapid growth in imports.
