Pakistan sees modest rise in US exports despite tariff advantage

Pakistan’s exports to the United States posted only a modest increase in December, reaching $537 million, up from $505 million in the same month a year earlier, according to country-wise export data released by the State Bank of Pakistan.

The year-on-year growth remained subdued despite Pakistan enjoying a tariff advantage in the U.S. market. However, exports showed a stronger performance on a month-on-month basis, rising from $451 million in November.

“While the annual growth looks marginal, the month-on-month improvement suggests some recovery in export momentum, particularly in textiles,” a trade analyst said. “Still, Pakistan has not fully capitalized on its tariff edge in the U.S. market.”

During the first six months of fiscal year 2026, Pakistan’s exports to the United States totaled $3.177 billion, compared with $3 billion in the corresponding period of the previous fiscal year, the data showed.

In the full fiscal year 2025, exports to the U.S. rose 11% to $6.03 billion.

What about other countries?

Exports to other major markets showed mixed trends in December. Shipments to China stood at $233 million, remaining flat compared with the same month last year. Exports to the United Kingdom increased to $191 million from $165 million, while shipments to Germany rose to $145 million from $136 million.

Exports to the Netherlands climbed 11% to $131 million, and shipments to Belgium and France also recorded sharp increases. Exports to the United Arab Emirates rose to $166 million from $156 million a year earlier.

A leading textile exporter welcomed the broader gains but cautioned against overconfidence.

“Demand in some European markets has improved, which is encouraging, but high input costs and financing constraints are still limiting our ability to scale up exports,” a Karachi-based businessman said. “Sustained growth will depend on consistent policies and global demand recovery.”