By Moaaz Manzoor

Pakistan’s trade deficit widened to Rs852.185 billion ($3.040 billion) in February 2026 as exports declined much faster than imports on a month-on-month basis, according to data released by the Pakistan Bureau of Statistics (PBS).

The PBS data showed that Pakistan’s exports during February 2026 stood at Rs636.939 billion, down from Rs855.496 billion in January 2026 and Rs695.549 billion in February 2025. This represented a decline of 25.55 percent compared with the previous month and 8.43 percent compared with the same month last year.

In dollar terms, exports were recorded at $2.278 billion, compared with $3.055 billion in January 2026 and $2.490 billion in February 2025, reflecting a decrease of 25.43 percent month-on-month and 8.51 percent year-on-year.

Imports also declined in February, though at a slower pace. According to the PBS, Pakistan’s imports amounted to Rs1.489 trillion during the month, compared with Rs1.627 trillion in January 2026 and Rs1.491 trillion in February 2025. This indicated a decline of 8.50 percent compared with January and 0.15 percent compared with the same month last year.

In dollar terms, imports stood at $5.318 billion, down from $5.805 billion in the previous month and $5.339 billion in February 2025, representing a decline of 8.39 percent month-on-month and 0.39 percent year-on-year.

With exports shrinking more sharply than imports, the monthly trade deficit widened to Rs852.185 billion in February 2026. In dollar terms, the deficit stood at $3.040 billion. The figures suggest renewed pressure on the external sector following January’s higher export base, even though imports also posted a decline during the month.

The cumulative picture for the fiscal year remained challenging. During July–February of FY26, exports were recorded at Rs5.758 trillion, compared with Rs6.143 trillion in the corresponding period of last year, marking a decline of 6.28 percent.

In dollar terms, cumulative exports fell to $20.468 billion from $22.073 billion, representing a decrease of 7.27 percent.

Meanwhile, cumulative imports during July–February FY26 rose to Rs12.832 trillion from Rs11.722 trillion in the same period of the previous year, registering an increase of 9.47 percent. In dollar terms, imports climbed to $45.569 billion from $42.110 billion, showing an increase of 8.21 percent.

As a result, the cumulative trade deficit widened to Rs7.074 trillion, or $25.101 billion, during the first eight months of the current fiscal year.

Among the main export commodities in February were readymade garments valued at Rs91.520 billion, knitwear at Rs87.363 billion, bedwear at Rs61.767 billion, cotton cloth at Rs37.057 billion, and rice (others) at Rs32.244 billion.

On the import side, the major items included petroleum crude worth Rs118.498 billion, palm oil at Rs107.980 billion, petroleum products at Rs79.510 billion, plastic materials at Rs71.211 billion, and iron and steel at Rs64.739 billion. LNG imports were valued at Rs52.923 billion, while electrical machinery and apparatus stood at Rs51.586 billion.

Credit: INP-WealthPk