Pakistan-US trade climbs 16% to $7.6 billion in FY25

Bilateral trade between Pakistan and the United States rose by 16% during the last fiscal year, reaching $7.598 billion, according to official documents released by Pakistan’s Ministry of Commerce.

Pakistan’s exports to the U.S. totaled $5.83 billion, marking a 10% year-over-year increase. Imports from the U.S. surged 40% to $1.763 billion. The resulting trade surplus in Pakistan’s favor exceeded $4 billion.

The United States remains one of Pakistan’s most significant export markets, particularly for textiles and garments—sectors that benefit from favorable tariff treatment under the U.S. Generalized System of Preferences (GSP), though Pakistan’s full eligibility under the program remains partial.

Key exports to the U.S.

• Bed linens, kitchen, toilet, and table linens led all categories with exports valued at $1.038 billion.
• Men’s suits, jackets, and trousers followed closely at $936 million.
• Readymade garments and dress patterns accounted for $386 million.
• T-shirts contributed $361 million, while jerseys and pullovers brought in $312 million.
• Sock exports reached $278 million.
• Leather products and women’s apparel exports stood at $165 million and $157 million, respectively.

Key imports from the U.S.

• Raw cotton topped the list at $393 million.
• Iron and steel scrap imports reached nearly $160 million.
• Soybean imports totaled $137 million, and coal imports stood at $56 million.
• Imports of turbojets and gas turbines reached $50 million.
• Computers and petroleum oils were imported at $40 million and $38 million, respectively.
• Electromedical equipment and dried fruits imports stood at $36 million and $33 million.

Trade experts attribute the rise in trade to the steady demand for Pakistani textiles in the U.S. and increased industrial imports from America, including raw materials and machinery. However, the trade relationship remains susceptible to shifts in U.S. tariff policies and Pakistan’s ongoing negotiations for better market access.

The growth comes amid calls from Pakistani industry groups for a free trade agreement or broader tariff concessions to ensure long-term competitiveness in U.S. markets.

The U.S. recently reduced reciprocal trade tariffs on Pakistan to 19% from 29%, which has been termed as some relief, but experts point out that the difference is not pronounced when compared to competitors. Therefore, Pakistan will need to lower electricity and gas tariffs to give Pakistani exporters an edge in the U.S. market.