Export Slump and Widening Trade Deficit
Overview
Pakistan's goods exports fell 5.9% to about $30.1 billion in FY2026 while imports rose 8.1%, widening the trade deficit to $39.6 billion. Textiles stagnated at about $17.9 billion, and rice exports fell sharply amid cheaper Indian competition, high financing costs and Afghan border closures.
Latest updates
Official data showed FY2026 exports of $30.14 billion and a trade deficit of $39.62 billion
Exporters reported cheaper Indian rice and an Afghan border closure costing about $1.1 billion in losses
Rice exports fell 28% in the first quarter of FY2026 amid policy hurdles and weaker competitiveness
(Dawn)
Recent developments
Weak exports leave Pakistan dependent on remittances, rollovers and IMF support, and raise the stakes of US tariff rates and EU GSP+ status. The United States is the largest single market for Pakistani goods, so US trade terms weigh heavily on any recovery.
Recommended resources
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Pakistan's trade deficit widens to $39.62 billion in FY2025-26 as imports rise 8.14%, exports fall 5.93%
16 July 2026
via Profit (Pakistan Today)
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Pakistan's textile exports remain stagnant at around $17 billion in FY26
16 July 2026
via Profit (Pakistan Today)
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Rice exports fall 28pc in first quarter of 2025-26
via Dawn
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Cheaper Indian rice hits Pakistan's export market as Afghan border closure causes $1.1bn losses
4 July 2026
via Profit (Pakistan Today)
