- July 27, 2026
- Posted by: Tresmark
- Category:
No Comments
Exports to most of Pakistan’s major overseas markets declined sharply in June, the final month of FY26, highlighting weakening external demand despite modest growth in a handful of destinations.
Exports fell in seven of Pakistan’s top 10 export markets during the month, while only three recorded growth, according to external trade data released by the Trade Development Authority of Pakistan (TDAP).
Exports to the US, Pakistan’s largest market, fell 12 per cent to $437 million in June from $496 million a year earlier.
Exports to the UK also declined 12 per cent, while shipments to the United Arab Emirates fell 14 per cent. Exports to Germany and Spain dropped 23 per cent and 16 per cent, respectively, while exports to the Netherlands and Italy declined by 25 per cent and 22 per cent.
Among the major destinations, exports to China rose 7.0 per cent, while shipments to Saudi Arabia surged 58 per cent. Exports to Bangladesh also increased by 10 per cent during the month under review.
Regionally, exports to Europe declined 21 per cent in June, followed by a 10 per cent fall in exports to Asian markets and a 13 per cent decline in shipments to the Americas. In contrast, exports to Africa and Oceania increased by 29 per cent and 17 per cent, respectively.
For the full FY26, export performance across Pakistan’s major markets remained subdued.
Exports to the United States increased by just 1.0 per cent during the year, while shipments to China rose 10 per cent. Exports to the United Kingdom fell 1.0 per cent and those to Germany declined 5.0 per cent.
Exports to the Netherlands, Bangladesh and Saudi Arabia decreased by 6.0 per cent, 7.0 per cent and 5.0 per cent, respectively, during FY26. Meanwhile, exports to the United Arab Emirates, Spain and Italy recorded modest growth of 1.0 per cent, 3.0 per cent and 1.0 per cent, respectively.
On a regional basis, exports to Europe declined 2.0 per cent during FY26, while shipments to Asian markets fell 14 per cent. Exports to Africa and Oceania decreased by 5.0 per cent and 3.0 per cent, respectively, whereas exports to the Americas edged up 1.0 per cent.
Analysts expect exports to face additional pressure in the coming months following America’s decision to impose a 10 per cent import tariff on goods from several countries, including Pakistan.
International trade and tariff expert Iqbal Tabish said the new US tariff could pose significant challenges for Pakistan’s export sector, noting that the United States remains the country’s largest export destination.
He said exporters were already under pressure from rising energy costs, elevated financing expenses linked to high interest rates and uncertainty caused by increasing petroleum prices. The additional US tariff, he said, is likely to further erode exporters’ competitiveness.
Commenting on regional competitors, Tabish said that although Bangladesh and India are also subject to the same 10 per cent tariff, their lower production costs mean they are likely to be less affected than Pakistan.
