Pakistan’s trade deficit stood at $3 billion in Feb’26, with exports at $2.3 billion (-8.5% YoY, -25.5% MoM) and imports at $5.3 billion (-0.4% YoY, -8.4% MoM). The 8MFY26 deficit widened 25.3% to $25.1 billion, AHL added. JS Global Research Head Muhammad Waqas Ghani noted that the KSE-100 index continued to extend its decline as heightened geopolitical tensions weighed on the market.
The index dropped 3,630 points (-2.3% WoW), following last week’s 10,566-point decline, pushing the cumulative fall from its January 2026 peak of 189,167 to nearly 19%.Market activity remained volatile throughout the week as investors continued to reduce exposure amid regional tensions and domestic security concerns. Sentiment remained cautious ahead of key macro developments. The IMF, in its end-of-mission statement on the third Extended Fund Facility review and second Resilience and Sustainability Facility review, noted considerable progress in discussions, which would continue to assess the impact of recent global developments on Pakistan’s economy.
As a net energy importer, Pakistan’s economy remains highly sensitive to international oil prices, with the government raising petrol prices by Rs55/litre last weekend, Ghani said.As per latest data, the Sensitive Price Indicator rose 1.89% WoW, driven mainly by higher petroleum product prices. On the other hand, remittances fell MoM in Feb’26 but stayed above $3 billion, with the UAE being the major contributor. Moreover, the State Bank’s reserves reached $16.34 billion, he added.
