Trade deficit narrows 9.36% MoM in March

April 02, 2026 (MLN): Pakistan's trade deficit narrowed by 9.36% month-on-month (MoM) to $2.73 billion in March 2026, compared to $3.01bn in February 2026, as a steeper decline in imports outpaced the marginal fall in exports during the month.

The improvement came on the back of a moderate contraction in exports alongside a sharper decline in imports, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

On a year-on-year (YoY) basis, however, the trade deficit expanded by 3.71% from $2.63bn recorded in March 2025, showing continued pressure on the external account.

Monthly Performance:

Exports in March 2026 slipped marginally to $2.26bn, registering a modest 0.55% MoM decline compared to $2.28bn in February 2026, suggesting a relative stabilisation after the steep fall seen in the previous month.

Imports fell more sharply to $4.995bn, down 5.57% MoM from $5.29bn in February.

The steeper contraction in imports relative to exports led to a narrowing of the monthly trade gap.

As a result, the trade deficit contracted to $2.73bn during the month.

Yearly Performance:

On a YoY basis, exports declined by 14.40% from $2.645bn in March 2025.

Imports also edged lower by 5.37% YoY from $5.278bn, but the sharper fall in exports compared to imports resulted in the trade deficit widening to $2.73bn, up 3.71% from $2.633bn in the same month last year.

Cumulative Trend (July – March FY26):

During the first nine months of FY26, total exports stood at $22.73bn, marking an 8.04% decline YoY compared to $24.72bn in the same period of FY25.

Meanwhile, cumulative imports surged 6.64% YoY to $50.54bn, up from $47.39bn last year.

Consequently, the cumulative trade deficit widened significantly to $27.81bn, reflecting a 22.65% increase compared to $22.67bn in the corresponding period of FY25.

Despite a monthly improvement in the trade balance driven by declining imports, the persistent YoY expansion in the deficit and the sharply widening cumulative gap highlight deep-rooted structural imbalances in Pakistan's external sector, keeping sustained pressure on the country's balance of payments position.

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