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Economic reforms: Pakistan’s January trade deficit shrinks as exports cross $3bn for first time

Pakistan exports cross $3bn in January as trade deficit shrinks

ISLAMABAD: Pakistan’s exports recorded a major jump in January as the country’s trade deficit narrowed, reflecting the impact of ongoing economic reforms under the Special Investment Facilitation Council (SIFC).

According to the Pakistan Bureau of Statistics (PBS), exports crossed $3 billion for the first time in January, while imports declined to nearly $5.5 billion.

The official data shows exports increased by 35% month-on-month, whereas imports dropped by 5% during the same period.

During the first seven months of the current fiscal year, total exports stood at around $18 billion, while imports were recorded at nearly $40 billion, the figures showed.

The textile sector remained the top contributor to exports, with notable improvement in the value-added segment. Exports of sports goods, chemicals, pharmaceuticals and engineering products also witnessed growth.

Officials said Pakistan’s trade deficit in January 2026 declined by 28%, marking a positive sign for external sector stability.

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