Key Takeaways
- Pakistan's exports fell 9% year on year in June 2026.
- Imports reached their highest level in 48 months, up 29% year on year.
- Textile exports dropped significantly, marking a 14-month low.
Pakistan’s exports experienced a significant decline in June 2026, falling to $2.25 billion, down 9 percent from the same period last year and 16 percent compared to May of the same year. This downturn marks a 14-month low for textile exports, Pakistan's largest export category, which dropped to $1.27 billion, reflecting a 17 percent decrease from June 2025 and a 23 percent drop from May 2026.
The surge in imports was equally striking, reaching $6.93 billion in June, the highest level since April 2022. This increase is primarily attributed to a sharp rise in petroleum imports, which climbed to $1.91 billion, up 46 percent year on year and 33 percent month on month. Other notable increases include transport imports, which rose by 57 percent year on year, and agricultural imports, which increased by 32 percent.
For the full fiscal year 2025-26, Pakistan’s exports totalled $30.14 billion, a decrease of 6 percent from the previous fiscal year. Textile exports remained relatively stable at $17.93 billion, while food exports declined by 29 percent. Imports for the same period reached $69.76 billion, marking an 8 percent increase over the previous fiscal year and setting a new four-year high.
The analysis from Topline Securities highlights that these figures come at what many economists are calling the 'worst possible time,' given the current economic climate in Pakistan. The sharp rise in imports, particularly in petroleum and transport sectors, has put additional strain on the country's foreign exchange reserves, which were already under pressure due to lower export revenues.
Economic experts warn that this situation could exacerbate inflationary pressures and impact the overall balance of payments. Dr. Ayesha Khan, an economist at Topline Securities, stated: 'The current imbalance between imports and exports is concerning and needs immediate attention from policymakers.'
The decline in textile exports, which typically account for a significant portion of Pakistan's export earnings, could have far-reaching implications for the country’s manufacturing sector. This sector employs millions of people and contributes substantially to the national economy.
In response to these challenges, the government is likely to face increased pressure to implement measures that can boost exports while curbing unnecessary imports. Analysts suggest that diversifying export markets and improving the efficiency of domestic industries could be key strategies moving forward.
The situation also highlights the vulnerability of Pakistan’s economy to global market fluctuations, particularly in sectors like petroleum and agriculture. As the country continues to navigate these economic challenges, stakeholders will be closely monitoring government policies and their impact on both import and export figures.
'The current imbalance between imports and exports is concerning and needs immediate attention from policymakers.'
Dr. Ayesha Khan, Economist at Topline Securities
