Despite a volatile regional situation influenced by ongoing conflict, Pakistan’s economic performance in March 2026 remained resilient, with most high-frequency indicators showing double-digit year-on-year (YoY) growth. The automobile sector stood out, with tractor and passenger car sales increasing significantly by 95.6% and 39.9% YoY, respectively, driven by a 42-month high in auto financing, which reached Rs 345.3 billion. Additionally, urea sales rebounded sharply, up 85.6% YoY.

In terms of macroeconomic indicators, secondary market yields on 6-month treasury bills rose by 70 basis points compared with February 2026, driven by concerns about higher inflation amid rising oil prices. On the external sector front, the current account recorded a substantial surplus of US$1.1 billion, buoyed by remittances totaling US$3.8 billion. Similarly, net Foreign Direct Investment (FDI) surged, up 163.3% YoY.

Conversely, the KSE-100 Index declined 11.5% month-on-month in March 2026 amid concerns over the ongoing war. However, the one-year return as of March 2026 stands at 26.3%.

Courtesy – Topline Research