Mubarak Zeb Khan
July 3, 2026
ISLAMABAD: Pakistan’s merchandise exports not only missed the annual target by $4.87bn for FY26, but also contracted, reflecting the PML-N-led coalition government’s failure to achieve visible improvement over the last four years.
The export proceeds also contracted by 5.97pc compared with last year’s $32.04bn.
Furthermore, the trade deficit widened amid a rise in imports and a decline in exports, the Pakistan Bureau of Statistics said on Thursday.
In absolute terms, export proceeds were recorded at $30.13bn in FY26, against the budget-projected target of $35bn. Despite the missed target, the Ministry of Commerce did not issue any statement explaining the decline in exports.
Proceeds contract 6pc year-on-year to $30.13bn; trade gap widens 21.57pc
The declining trend has persisted in recent months, with exports posting negative growth in February and March, followed by a brief recovery in April. Despite this short-lived improvement, exporters remain cautious and do not expect a sustained rebound in export earnings in the near term.
In June, exports dipped 9.61pc to $2.24bn, down from $2.47bn in the corresponding month last year. On a month-on-month basis, export proceeds dipped by 16.73pc.
Negative export growth has continued since August, except in July, when exports grew by 16.43pc year on year. Export earnings posted negative growth, with proceeds declining by 20.41pc in December 2025.
This follows a 14.54pc drop in November, 4.46pc in October, 3.88pc in September, and 12.49pc in August, reflecting persistent pressures on the country’s external trade performance.
