Pakistan Trade Deficit Soars 44.42% Amid Export Declines

As of February 2026, Pakistan's economic landscape is facing significant challenges despite some signs of improvement. The trade deficit has soared by 44.42% to $7.683 billion in the first half of FY26, largely due to a sharp decline in exports, which fell 18.56% to $1.965 billion. This decline is attributed to reduced shipments to key trading partners, including a 56.61% drop in exports to Afghanistan and a 5.59% decrease in exports to China (IANS, February 27, 2026). The overall trade deficit for the first half of FY26 has ballooned to $19.2 billion, reflecting a persistent disconnect between domestic consumption needs and the economy's capacity to generate foreign exchange through sales abroad (IANS, January 23, 2026).