Exports increase 11pc amid soaring deficit

ISLAMABAD: Pakistan's merchandise exports grew by 10.84 per cent in the first quarter of the current fiscal year (FY27), despite the trade gap widening on the back of rising imports, the Pakistan Bureau of Statistics reported on Friday. In absolute terms, export proceeds stood at $8.43 billion in July-September, up from $7.59bn in the corresponding period last year. Officials noted that the impact of budgetary measures on the export sector may become more apparent in the months ahead. Export proceeds grew despite Prime Minister Shehbaz Sharif's clear displeasure with exporters' performance. In September, exports rose by 17.61pc to $2.94bn, from $2.49bn in the same month last year, suggesting a revival of the export sector. Trade gap widens 15.13pc to $10.79bn in July-Sept On a month-on-month basis, export proceeds rose 16.07pc. In FY26, Pakistan's merchandise exports not only missed the annual target by $4.87bn, but also contracted, reflecting the PML-N-led coalition government's failure to achieve visible improvement over the last four years. Export proceeds also contracted by 5.97pc to $32.04bn. The planning ministry had earlier projected that export proceeds would climb to $60bn by 2030 — a target that has largely remained confined to official documents. More recently, however, the same ministry revised the projection upward, setting a new target of $100bn by 2035. Jawed Bilwani, Coordinator of the All Pakistan Exporters Association Forum, said exporters were struggling for survival amid unprecedented challenges, including high manufacturing costs, lack of competitiveness, and the absence of a level playing field. He highlighted that Pakistani exporters operate on narrow profit margins compared to regional competitors, face higher taxes than other businesses, and endure prolonged delays in refund payments without compensation. He added that arbitrary FBR deductions, liquidity pressures, and high operational costs were crippling the sector. The export sector had already been under pressure since February due to the Middle East conflict. The disruptions in the Strait of Hormuz have pushed up shipping costs for exporters and disrupted supply chains. Similarly, exports to Afghanistan have been suspended since October 2025, which is also one of the major export markets. Trade deficit According to PBS data, imports rose 13.21pc to $19.22bn in 1QFY27 from $16.97bn in the corresponding quarter last year. In September, import value rose 11.05pc to $6.49bn from $5.84bn in the corresponding month last year. Month-on-month, imports increased 11.05pc. In FY26, the import bill grew by 7.89pc to $69.59bn against $64.51bn in FY25. The trade deficit rose 15.13pc to $10.79bn in 1QFY27 from $9.37bn over the corresponding quarter last year. In September, the trade deficit rose 6.15pc to $3.55bn from $3.35bn in the corresponding month last year. Published in Dawn, October 3rd, 2026