By Ayesha Saba

Pakistan’s merchandise trade deficit widened on a month-on-month basis in February 2026, as exports fell sharply while imports registered a comparatively modest decline, reports Wealth Pakistan, quoting data released by the Pakistan Bureau of Statistics (PBS).

The trade gap stood at $2.981 billion in February 2026, up 8.4% from $2.75 billion recorded in January. In rupee terms, the deficit increased 8.25% to Rs835.63 billion from Rs771.98 billion a month earlier.

Exports in February 2026 were recorded at $2.272 billion (Rs635.39 billion), marking a steep 25.63% decline compared to $3.055 billion in January. In rupee terms, exports fell 25.73% over the previous month, reflecting a slowdown in external demand and lower shipment volumes.

Imports, meanwhile, stood at $5.253 billion (Rs1.471 trillion) in February 2026, down 9.51% from $5.805 billion in January. The contraction in imports, though notable, was insufficient to offset the sharper fall in exports, resulting in a wider monthly trade gap.

On a year-on-year basis, exports declined 8.76% in dollar terms compared to February 2025, when they stood at $2.49 billion. In rupee terms, the annual decrease was 8.65%. Imports posted a marginal decline of 1.61% year-on-year in dollar terms.

Consequently, the trade deficit widened by 4.63% in dollar terms, compared with $2.849 billion in February last year.

In Cumulative Trend (July–February FY26), exports totalled $20.462 billion, down 7.30% from $22.073 billion in the corresponding period of last fiscal year. In rupee terms, exports declined 6.30% to Rs5.756 trillion.

In contrast, cumulative imports rose 8.06% in dollar terms to $45.504 billion during July–February FY26, compared to $42.11 billion in the same period last year. In rupee terms, imports increased 9.31% to Rs12.814 trillion.

As a result, the trade deficit during the eight-month period surged 24.98% in dollar terms to $25.042 billion, compared to $20.037 billion a year earlier. In rupee terms, the deficit expanded 26.51% to Rs7.058 trillion.

Credit: INP-WealthPk