Pakistan’s merchandise exports to North America experienced a 3.07 percent increase, reaching $3.916 billion in the first seven months of the fiscal year 2025-26, compared to $3.799 billion during the same period last year.
Strengthening Trade Ties with the US
This rebound in exports is largely attributed to increased shipments to the United States, indicating a strengthening trade relationship between Islamabad and Washington. The US market accounts for approximately 94 percent of Pakistan’s total exports to North America, with the remaining exports primarily going to Canada.
Data from the State Bank of Pakistan reveals that the growth is primarily driven by a surge in textile and clothing exports to the US. Exports to the US rose 3.47 percent to $3.690 billion in the first seven months of FY26, up from $3.566 billion a year prior. Exports to the US increased 10.72 percent to $6.028 billion in FY25, compared to $5.444 billion in the previous fiscal year.
Canada Trade Declines
While trade with the US is growing, exports to Canada have decreased. Exports to Canada shrank 2.64 percent to $226.28 million in the first seven months of FY26, down from $232.42 million a year ago. In FY25, exports to Canada totaled $386.106 million, a slight decrease from $389.220 million in FY24.
Imports from North America, however, have seen a substantial increase, surging 29 percent to $1.821 billion in the first seven months of FY26, compared to $1.411 billion the previous year. Total imports from North America rose 26.98 percent to $2.588 billion in FY25, with the majority of these imports originating from the US.
To address the trade imbalance, Pakistan has entered into a new agreement to import an additional $2.5 billion worth of goods from the US in the current fiscal year.
Regional Trade Variations
Looking beyond North America, Pakistan’s exports to Latin America decreased by 18.87 percent to $37.14 million in the first seven months of FY26. Exports to Central America saw a slight increase, rising to $103.54 million from $102.92 million. Shipments to Mexico, a key Central American market, fell to $76.55 million from $78.85 million. Exports to South America, including Argentina, Brazil, and Uruguay, rose 18.46 percent to $238.52 million.
Frequently Asked Questions
What is the current state of Pakistan’s exports to North America?
Pakistan’s merchandise exports to North America grew 3.07 percent to $3.916 billion in the first seven months of 2025-26.
Which country accounts for the majority of Pakistan’s exports to North America?
Nearly 94 percent of Pakistan’s exports to North America are destined for the US market.
Has Pakistan increased or decreased imports from North America?
Imports from North America surged 29 percent to $1.821 billion in the first seven months of FY26.
As Pakistan continues to navigate evolving global trade dynamics, will the strengthening relationship with the US and the new import agreement be sufficient to address the trade deficit and foster sustained economic growth?
