Pakistan recorded a trade deficit of PKR 721.59 billion in May 2026, narrowing from PKR 842.49 billion a year earlier and easing significantly from a record shortfall of PKR 1,191.9 billion in the previous month. The May gap is equivalent to USD 2.58 billion. On a year-on-year basis, exports edged up 0.2% to PKR 753.7 billion, while imports fell 7.5% to PKR 1,475.3 billion. In contrast, April saw imports surge to a record PKR 1,880 billion, driven in part by higher global oil prices linked to tensions with Iran, underscoring Pakistan’s continued reliance on imported energy. Over the July 2025–May 2026 period, exports declined 5%, while imports increased 6.7%, widening the cumulative trade deficit by 18.3% to PKR 9,775.3 billion.