• Official data shows rising strain on external account balance.
• Imports climb 8.1% to $45.5bn in July-February FY26 period.
• Economists warn deficit may pressure rupee and reserves.
  

ISLAMABAD: Pakistan’s merchandise trade deficit surged by 25% year-on-year to reach $25 billion during the first eight months of the current fiscal year, as imports remained more than twice the value of exports.

The latest official figures released on Monday underscored mounting pressure on the country’s external account, signalling renewed stress on its balance of payments position, The News reported.

Figures released by the Pakistan Bureau of Statistics showed imports during July-February FY26 rose 8.1% to $45.5 billion, while exports dropped 7.3% to $20.46bn, leaving the import bill more than double the country’s goods sales abroad.

The gap continued to widen in February 2026, with the monthly trade deficit expanding 4.6% year-on-year to $2.98bn. Exports fell 8.76% from a year earlier to $2.27bn, while imports reduced 1.6% to $5.25bn.

On a month-on-month basis, the slowdown was sharper. February exports plunged 25.6% from January’s $3.05bn, while imports declined 9.5% from $5.8bn.

The services sector offered limited relief. The services trade deficit widened 14% to $2.07bn in July-January FY26, compared with $1.82bn a year earlier, even as exports rose 18.78% to $5.66bn. Services imports climbed 17.5% to $7.7bn over the same period.

In January alone, the services deficit grew 5.1% year-on-year to $304.8 million. Services exports jumped 31% to $885m, but imports outpaced at $1.189bn, up 23.3%.

In the last fiscal year (FY25), the services trade deficit had narrowed 15.8% to $2.62bn, driven by a 9.2% rise in services exports to $8.4bn, compared with a modest 2% increase in imports to $11bn.

Economists say the expanding goods deficit, driven by subdued export momentum and resilient import demand, could strain foreign exchange reserves and keep pressure on the rupee unless export competitiveness improves or import compression deepens.

The Duke of Edinburgh was back to championing the Commonwealth sporting family on Monday afternoon, hosting a key meeting in his role as Vice Patron of Commonwealth Sport.

Prince Edward welcomed Donald Rukare, President of Commonwealth Sport, for discussions covering a packed calendar of upcoming events, including the highly anticipated Glasgow 2026 Commonwealth Games.

The talks also addressed the Malta 2027 Commonwealth Youth Games and the historic Ahmedabad 2030 Commonwealth Games, marking the Centenary Games.

Rukare later shared on X that he had briefed His Royal Highness on the organisation’s ongoing work, thanking the Duke for his steady guidance and continued encouragement. 

The meeting also showed Edward’s longstanding commitment to the Commonwealth network, which spans 56 nations and uses sport as a vehicle for unity, development and opportunity.

The Duke had sparked concern when he missed the key event, where senior royals gathered in a powerful show of unity around King Charles. 

Just days later, Edward returned to the spotlight on February 28. 

He attended an emotional performance of Benjamin Britten’s War Requiem at the breathtaking St George’s Chapel, set within the historic walls of Windsor Castle.

Justin Timberlake is taking legal action to prevent the release of bodycam footage from his drunk driving arrest, suing the Long Island village of Sag Harbor in an attempt to block the video from becoming public.

Court documents obtained by Page Six on Monday show the SexyBack singer has filed a petition in Suffolk County Supreme Court seeking an order to stop the footage from being released. 

The recording was captured by officers during Timberlake’s traffic stop and arrest in June 2024.

In the filing, Timberlake, 45, argues that the video depicts him “in an acutely vulnerable state during a roadside encounter with law enforcement” and that it contains “intimate details” of his “physical appearance, demeanor, speech, and conduct” during his field sobriety test, arrest, and subsequent confinement. 

Timberlake was arrested on 18th June 2024 after allegedly running a stop sign and swerving between lanes while driving his BMW following a night out with friends. 

The responding officer, reportedly so new to the job that he didn’t recognise the Grammy-winning artist, alleged that Timberlake failed his field sobriety tests and showed signs of poor balance and an inability to follow instructions. 

He ultimately pleaded guilty to the lesser, non-criminal charge of driving while ability impaired by alcohol, avoiding a full DWI conviction. 

He was ordered to complete 25 hours of community service, pay a $500 fine plus a $260 surcharge, and had his New York driver’s licence suspended for 90 days.