Exports Decline Pushes Pakistan’s Trade Deficit to $27.9 Billion

Pakistan’s external sector is facing mounting pressure as the trade deficit widened significantly during the first nine months of FY26, largely due to a steep decline in exports. According to data released by the Pakistan Bureau of Statistics, the country recorded a trade gap of $2.8 billion in March 2026 alone, highlighting ongoing imbalances in trade flows. Cumulatively, the deficit surged to $27.9 billion, reflecting a sharp 23.1% increase compared to the same period last year. Monthly exports were reported at $2.275 billion, showing a notable 14% year-on-year drop, although figures remained relatively stable compared to the previous month. On the other hand, imports stood at approximately $5.1 billion, registering a modest decline of 3.1% annually and 3.3% on a monthly basis. Despite easing import levels, the sharper contraction in exports has continued to widen the trade gap, putting additional strain on Pakistan’s economy. Analysts warn that unless export performance improves, the country may face further challenges in stabilizing its external account, even as import demand shows signs of gradual slowdown.