Pakistan’s external sector came under renewed pressure as the country posted a trade deficit of $2.8 billion in March 2026, driven primarily by a steep decline in exports even as imports showed a modest slowdown, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
On a cumulative basis, the trade gap widened significantly during the first nine months of FY26, reaching $27.9 billion, marking an increase of 23.1 percent compared to the same period last year. The widening deficit reflects persistent weakness in export performance, which continues to outweigh any relief coming from reduced import demand.
Exports during March stood at $2.275 billion, registering a sharp 14 percent year-on-year decline, while remaining largely stable on a month-on-month basis. The contraction highlights ongoing challenges for the export sector, particularly in maintaining momentum amid global and domestic headwinds.
Imports for the month were recorded at approximately $5.1 billion, showing a decline of 3.1 percent compared to March last year and falling about 3.3 percent from the previous month. Despite the moderation in import volumes, the reduction was not enough to offset the sharper fall in exports.
As a result, the trade balance deteriorated on an annual basis, with the widening gap largely attributed to the faster decline in export earnings compared to imports, underscoring continued pressure on Pakistan’s external account.
