Pakistan’s trade imbalance has significantly worsened during the initial nine months of the current fiscal year, with the deficit expanding by 23 percent to reach $28 billion. This marks a notable increase compared to the $22.67 billion deficit recorded in the same period last year, underscoring growing economic challenges for the country.
The latest data from the Pakistan Bureau of Statistics reveals that exports have declined by 8 percent, falling to $22.73 billion from $24.72 billion in the previous year. Meanwhile, imports have risen by 6.64 percent, climbing to $50.54 billion from $47.39 billion. This divergence between export earnings and import expenditures has been a key factor driving the widening trade gap.
In a significant development on a monthly scale, exports in March 2026 dropped sharply by 14.4 percent year-on-year, amounting to $2.26 billion compared to $2.64 billion in March 2025. Imports for the same month stood at $4.99 billion, resulting in a monthly trade deficit of $2.73 billion. This figure is slightly higher than the $2.63 billion deficit seen in March of the previous year, representing a 3.71 percent increase.
However, despite the year-on-year increase, the trade deficit showed some improvement when viewed month-on-month, narrowing by 9.36 percent compared to February. These figures collectively highlight the persistent strain on Pakistan’s external accounts, driven by a combination of falling export revenues and sustained import demand, which continue to challenge the country’s economic stability.
