Key Takeaways
- Pakistan’s exports fell by over USD 1 billion in 2025-26.
- Commerce Secretary attributes decline to high energy and import costs.
- Minister suggests involving other government stakeholders for export growth.
The National Assembly Standing Committee on Commerce has criticized the Commerce Ministry for its failure to improve Pakistan’s exports, which declined by over USD 1 billion during the 2025-26 fiscal year, according to the Commerce Secretary, Jawad Paul.
During a meeting presided over by Jawed Hanif Khan, the committee was informed that Pakistan’s exports fell from approximately USD 32 billion in 2024-25 to USD 30.8 billion in 2025-26, citing a variety of reasons including regional conflicts and high energy and import costs.
The decline was particularly pronounced in key sectors, with rice exports falling by USD 1.08 billion, sugar exports by USD 403 million, and cotton exports by USD 134 million, among others.
Commerce Secretary Jawad Paul attributed the decline to regional situations and the conflict in Afghanistan, stating that exports of several major commodities had fallen by more than USD 1.5 billion.
Responding to a question, Paul highlighted that India had provided around USD 1.5 billion in subsidies to its rice exporters, making it difficult for Pakistani exporters to compete.
He also noted that Pakistan was not getting its due share in some international markets due to its products not being competitive, despite substantial concessions in the US, EU, and UK markets.
Minister Jam Kamal Khan suggested that other relevant government stakeholders, including the Ministry of National Food Security and Research, Ministry of Industries and Production, and Federal Board of Revenue, should be brought together to discuss production and taxation-related issues.
Paul emphasized that high energy and import costs had made Pakistani products expensive in international markets, adding that while India was exporting cotton, Pakistan was importing it.
He also pointed out that Pakistan’s cotton production had plummeted to a 40-year low of roughly 5 to 6.85 million bales, compared with a historical peak of more than 14 million bales.
Committee member Engineer Gul Asghar Khan questioned why businessmen would export products when they could earn better returns by selling them in the domestic market.
The secretary stated that the government was working on six major components for export growth and was also focusing on trade policy and trade promotion measures.
Pakistan’s exports fell from around USD 32 billion in 2024-25 to USD 30.8 billion during 2025-26 due to a variety of reasons.
Jawad Paul, Commerce Secretary
We are not going there because we are not competitive.
Jawad Paul, Commerce Secretary
