Food, machinery imports fuel 26% deficit spike

Pakistan's trade deficit widened by 26% in the first month of the current fiscal year – 2026-27, mainly due to a 19% increase in imports. According to data released by the Pakistan Bureau of Statistics, imports of various goods, including food items, vehicles, transport equipment and machinery, recorded significant growth. Food imports in July 2026 amounted to $805.4 million, or more than Rs224 billion. The report said imports of milk, cream and milk food for infants rose by 25% to $18.7 million. Spices, soybeans, palm oil and pulses were also imported, while sugar imports hit 112 metric tonnes. Machinery imports increased by 41% to $1.31 billion, including machinery for power generation, offices, textiles, agriculture, construction and telecommunications. Imports of transport equipment, including vehicles, rose by 40% to $420 million, while imports of textile products, including raw cotton, increased by 15% to $680 million. Imports of agricultural equipment and chemicals recorded a 23% spike, with the import bill exceeding $1 billion. Imports of various metals, including gold, steel and iron, also rose by 23%, while the import bill for precious metals surpassed $730 million.