Exports in 30 Sectors Decline in First Quarter of FY-2026
Pakistan’s export performance took a downturn in the first quarter of fiscal year 2025–26, as official data revealed that exports from 30 of 71 major sectors recorded a decline. The slowdown has added pressure on the economy, widening the country’s trade deficit and raising concerns over the government’s export growth targets.
According to data released by the Pakistan Bureau of Statistics (PBS), the trade deficit surged to $9.4 billion between July and September. Exports dropped by 3.88% to $7.6 billion (Rs2.15 trillion), while imports rose sharply by 13.9% to $17 billion (Rs4.82 trillion) during the same period.
The report identified major sectors hit by declining exports, including jewellery, furniture, carpets, chemicals, pharmaceuticals, plastics, rice, vegetables, tobacco, seed oils, and cotton fabrics. Food exports saw a steep drop of 31%, with rice exports plunging 42% and Basmati rice down 43.6%. Similarly, vegetable exports fell 41%, tobacco 48%, and nuts and oilseeds 68%, while sugar exports remained completely halted.
Some areas of the textile industry managed to show resilience. Although cotton cloth exports fell 14%, the overall textile sector grew 5.6%, with ready-made garments posting a 6% increase. Meanwhile, cement exports surged 51% and fruit exports rose 17%, offering a modest boost to the otherwise sluggish trade picture.
On the other hand, several manufacturing segments suffered losses — carpets and mats fell 12%, cutlery 12%, pharmaceuticals 7%, and transport equipment 38%. The jewellery industry faced the steepest decline at 98%, while handicrafts dropped by 94% and furniture by 12%.
Imports painted a contrasting picture, increasing across several key categories. Food imports grew by 35%, machinery by 21%, transport equipment by 112%, and textile-related imports by 11%. In contrast, petroleum imports declined by 6.7%, and petroleum products and natural gas fell 30%.
The government had set an ambitious trade deficit target of $29.92 billion for FY2025–26, alongside an export goal of $35.28 billion. However, the latest figures indicate that Pakistan is struggling to maintain momentum.
Under its five-year “Udaan Plan”, Pakistan aims to raise total exports to $60 billion. Yet, with the first quarter’s poor performance, achieving even the $2.5 billion export growth target for this fiscal year appears increasingly challenging.
The data underscores the need for diversified export strategies, targeted incentives for struggling sectors, and renewed focus on value-added manufacturing to stabilize Pakistan’s external trade balance. Without corrective measures, analysts warn that continued import dependency and uneven export growth could put additional strain on foreign exchange reserves in the coming months.
