Pakistan’s economic recovery faces mounting pressure as key indicators, including trade deficits and inflation, show worrying trends. The trade deficit in October surged 56 per cent year-on-year (YoY) to $3.2bn, according to data released by the Pakistan Bureau of Statistics on Tuesday.
While this was 4pc lower than September’s deficit, the sharp rise reflects sustained pressure on the country’s external account. Cumulative figures for July-October FY26 show the trade deficit widened 38pc YoY to $12.582bn, up from $9.115bn during the same period last fiscal year.
Analysts attribute this increase to a combination of rising imports and declining exports. Economic experts caution that unchecked import growth could further widen the trade deficit, jeopardising the possibility of a current account surplus, boosting State Bank reserves, and maintaining a stable exchange rate. Conversely, restricting imports could slow economic growth, threaten jobs, and push poverty rates higher. (DAWN)