Pakistan’s merchandise exports fell 6 percent during fiscal year 2025-26, dropping by nearly $2 billion to around $30 billion, according to data released by the Pakistan Bureau of Statistics (PBS).
The final export figures may differ slightly, as the State Bank of Pakistan (SBP) is expected to release its Balance of Payments data in the coming weeks. The SBP’s data is generally considered a more accurate measure of exports because it is based on actual foreign exchange receipts rather than customs declarations.
The decline was largely driven by a sharp fall in rice exports, which had reached record levels in the previous fiscal year. Export earnings from rice dropped by more than $1 billion as international prices retreated following the relaxation of India’s export restrictions, while export volumes also declined.
Exports of several other agricultural commodities and non-textile products also weakened during the year, adding to the overall decline in merchandise exports.
Textile exports, Pakistan’s largest export category, remained broadly stable. While higher value-added textile products recorded growth, the increase was insufficient to offset losses in rice and other export segments.
In contrast, services exports continued to strengthen, supported primarily by robust growth in information technology (IT) and IT-enabled services. Services exports are expected to rise by nearly 20 percent during FY2026.
Despite the decline in goods exports, the strong performance of the services sector is expected to keep Pakistan’s combined goods and services exports close to $40 billion, broadly unchanged from the previous fiscal year.
