Pakistan’s exports in the first three quarters of FY26 dropped by 7.14 percent in rupee terms, totaling Rs6.39 trillion, leading to a significant increase in the trade deficit, as per a report by The Express Tribune. The country’s economic growth slowdown, coupled with adverse regional conditions, is expected to impact the balance of payments as the fiscal year concludes.
The report highlights concerns over the trade deficit, which is projected to reach $32 billion due to a surge in imports despite government interventions, while exports remain stagnant. Additionally, Pakistan’s equity market has experienced substantial outflows following the closure of numerous multinational companies.
Despite government efforts to attract foreign direct investment (FDI) and leverage the country’s strategic location for connectivity, challenges persist. Pakistan’s annual imports have risen, primarily driven by purchases of fuels, electrical equipment, and edible oils. Moreover, amidst the West Asia conflict, Pakistan has raised petrol and diesel prices by approximately 15 rupees per liter.
The country faces a potential slowdown in remittances due to retrenchments and deportations from Gulf states, posing further economic challenges. On a positive note, the International Monetary Fund (IMF) is set to provide over $1.2 billion to Pakistan under its existing loan program.
