KARACHI: Adviser to Pakistan’s finance minister Khurram Schehzad on Wednesday said the country’s trade deficit narrowed by 39 percent, driven by a 10 percent rise in exports, as authorities said the economy was moving toward stability.
The development comes as the cash-strapped country struggles to stabilize its foreign exchange reserves amid looming debt repayments and limited avenues for fresh inflows. Total liquid reserves held by the country stood at $22.65 billion as of May 29, according to the State Bank of Pakistan.
Latest data from the Pakistan Bureau of Statistics (PBS) showed that the trade deficit narrowed by $409 million to $2.5 billion in May FY26, compared with $2.9 billion in the same month a year earlier.
“A massive 39 percent reduction in trade deficit! Best indicators for Pakistan’s economy in May 2026: 10 percent increase in Exports, 22 percent decrease in Imports,” Schehzad said in a post on X.
“The increase in exports and decrease in imports has significantly reduced the trade gap,” he continued. “The national economy is moving toward sustainability and stability.”
According to the PBS report, Pakistan’s exports increased by 1.26 percent, rising from $2.67 billion in May 2025 to $2.70 billion in May 2026, while imports declined by 6.6 percent, falling from $5.6 billion in May 2025 to $5.2 billion this year.
Pakistan’s top exports last year included knitwear, readymade garments, bedwear, cotton cloth, rice, towels, made-up articles, fruits, cotton yarn, and basmati rice.
Major imports included petroleum products, crude oil, palm oil, electrical machinery and apparatus, plastics, iron and steel, liquefied natural gas, mobile phones, and raw cotton.
The country, however, remains heavily reliant on foreign petroleum products.
