- August 24, 2026
- Posted by: Tresmark
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Pakistan’s exports of goods and services increased 13.1% year-on-year to $3.94 billion in July 2026, up from $3.48 billion recorded in July 2025, Federal Minister for Planning Ahsan Iqbal said.
Goods exports alone rose 9.4% to $3.0 billion, compared with $2.8 billion a year earlier, providing a positive start to FY2026-27.
The increase was supported by stronger performance across several major export categories. Surgical goods exports grew 16.3%, food exports increased 8.0%, leather goods rose 7.8%, while textiles recorded 3.9% growth.
Industrial Activity Strengthens
Pakistan’s large-scale manufacturing sector also showed a broad-based recovery, expanding 5% during FY2025-26 after contracting 0.74% in the previous fiscal year.
Of 22 major LSM sectors, 16 recorded positive growth. Automobiles led the expansion with growth of 57.8%, followed by transport equipment at 42.4%, electrical equipment at 14.3%, tobacco at 12.6% and food at 7.0%.
The improvement in industrial activity was accompanied by stronger government revenue and external-sector indicators. FBR tax collection increased 8.4% to Rs820.9 billion in July, while workers’ remittances climbed 13% to around $3.6 billion.
ICT Exports Continue to Grow
Pakistan’s technology sector also contributed to export earnings, with ICT exports reaching $417 million in July 2026.
The government sees digital and technology services as an increasingly important source of foreign exchange earnings as Pakistan seeks to diversify its export base.
The current account deficit remained relatively contained at $328 million in July, compared with $529 million in the same month last year.
Fiscal Position Improves
Ahsan Iqbal said the country’s fiscal position also strengthened, with the fiscal deficit narrowing to 2.6% of GDP in FY2025-26, compared with 5.4% a year earlier. He described this as the lowest fiscal deficit in two decades.
Inflation eased to 9.2% in July 2026, although the year-on-year increase remained elevated due partly to base effects and the impact of global food and energy prices.
The government said its focus for FY2026-27 will remain on maintaining economic stability, accelerating structural reforms, improving development spending efficiency and shifting toward export-led growth.
The latest export performance, stronger industrial activity and continued remittance inflows indicate a more resilient start to the new fiscal year, although sustaining this momentum will depend on continued structural reforms and improvements in Pakistan’s productive and export capacity.
