Overview
- May 2026 merchandise data from the Pakistan Bureau of Statistics show the monthly trade deficit fell to $2.58 billion after imports dropped to $5.29 billion and exports rose to $2.705 billion.
- Despite the May improvement, the cumulative goods gap for July–May widened to $34.76 billion as imports rose to $62.66 billion and goods exports fell to $27.90 billion year to date.
- Analysts and the coverage link the May import decline to cooling domestic demand and tighter import controls, and they say the export uptick in May was modest rather than a broad rebound.
- Services exports have helped trim the external shortfall, with services receipts up about 17.7% year to date to roughly $8.3 billion while the services deficit narrowed to about $2.04 billion.
- Policy makers will watch June’s final fiscal‑year data for signs the May easing can persist, because sustained export growth and stricter curbs on non‑essential imports are needed to stabilise reserves and ease pressure on businesses and the foreign‑exchange market.