KARACHI: Despite a volatile regional situation due to ongoing conflict, Pakistan's economic performance in March 2026 demonstrated resilience, with several high-frequency indicators showing significant year-over-year growth. The automobile sector was a standout performer, with tractor and passenger car sales increasing by 95.6% and 39.9% respectively, driven by a 42-month high in auto financing, which reached Rs345.3 billion. Urea sales also experienced a sharp rebound, posting an 85.6% increase compared to the previous year.

According to JS Global, on the macroeconomic front, secondary market yields for six-month treasury bills rose by 70 basis points from February 2026, influenced by concerns about higher inflation as oil prices climbed. In the external sector, the current account recorded a substantial surplus of $1.1 billion, supported by $3.8 billion in remittances. Additionally, net Foreign Direct Investment (FDI) experienced a significant year-over-year increase of 163.3%.

Meanwhile, the KSE-100 Index saw a month-over-month decline of 11.5% in March 2026, amid concerns related to the ongoing war. However, the one-year return for the index in March 2026 stood at 26.3%, indicating a robust performance over the longer term despite recent challenges.