Pakistan’s Exports Drop Over $800M in Five Months

Pakistan’s trade sector has suffered a significant blow in the first five months of the current fiscal year. Data from the Pakistan Bureau of Statistics reveals a sharp decline in exports and a rise in imports. The trade deficit widened by over 37%, increasing by $4.19 billion compared to the same period last year. Between July and November, the trade gap surged to over $15.46 billion. This marks a worsening trend for the country’s economy.

Exports saw a steep decline of $877 million during the July-November period. Total exports dropped by 6.39%, from $13.72 billion last year to $12.84 billion this year. Regional tensions and trade barriers have disrupted trade flows, especially affecting food exports. Officials attribute the worsening performance to these factors, as well as growing restrictions on global trade. This has compounded the challenges facing Pakistan’s export sector.

Meanwhile, imports surged by 13.26%, reaching $28.31 billion in the same period. The rising import bill significantly contributed to the growing trade deficit. This imbalance between falling exports and rising imports has placed further strain on Pakistan’s trade balance. November proved especially difficult, with exports dropping 15.80% compared to October, a loss of $450 million. Imports in November also saw a slight decrease but remained high, further deepening the deficit.

The trade deficit in November increased by 33% year-on-year. Economists suggest that Pakistan’s export base remains structurally weak, compounded by ongoing regional challenges. These factors continue to widen the trade gap, with no immediate solution in sight. Authorities warn that unless geopolitical tensions ease, the trade outlook may continue to worsen in the coming months.

In response to the downturn, Pakistan’s Federal Board of Revenue (FBR) abolished the Export Development Surcharge (EDS) after 34 years. The surcharge, which had generated Rs5 to Rs6 billion annually, was removed following the Prime Minister’s directive to boost exports. The FBR’s move will prevent banks from deducting the surcharge from export proceeds, a step that could help ease financial burdens on exporters. However, concerns about Pakistan’s long-term trade stability remain amid the ongoing economic challenges.

READ MORE : Pakistan’s Textile Exports Rise 4% in Early Fiscal Year

Pakistan’s textile sector has shown promising signs of growth, with exports reaching new heights in the first four months of the fiscal year. From July to October, textile exports totaled $6.39 billion, marking a 4% increase compared to last year’s $6.14 billion. This performance highlights the resilience and strength of Pakistan’s textile industry.

In October 2025, textile exports reached $161 million. While this represents a small 0.57% decrease from the previous month, it remains competitive. The October figure was also just slightly lower than the $162 million recorded in October of the previous year.