Key Points
- Pakistan’s exports to Europe rise to $3.174bn in July–October FY26, up 5.66pc
- Southern Europe posts the strongest growth at 12.19%
- Western Europe remains largely flat with a slight 0.2% decline
- UK exports dip 1.03pc in post-Brexit trade environment
ISLAMABAD: Pakistan’s exports to Europe rose 5.66 per cent year-on-year in the first four months of fiscal year 2025-26, reaching $3.174 billion, according to data released by the State Bank of Pakistan.
The increase reflects renewed demand for Pakistani goods — particularly textiles and clothing — across several European regions.
The rise marks a continuation of last year’s momentum, when Pakistan’s exports to the European Union (EU) grew 7.44pc to $8.863bn in FY25. This followed a 3.12% contraction in FY24 despite Pakistan’s GSP+ preferential trade status, which provides duty-free access to most European markets.
Export growth in 4MFY26 was driven mainly by southern, eastern, and northern Europe.
Southern Europe posted the strongest expansion, up 12.19pc to $1.159bn, led by Spain (up 11.35pc to $533.37m) and Italy (up 9.07pc to $431.02m). Exports to Greece, however, slipped 4.27%.
Northern Europe recorded a 9.84% increase to $257.39m. Eastern Europe imports from Pakistan rose 10.03pc to $267.07m.
Western Europe — Pakistan’s largest EU market — remained relatively flat, with exports dipping 0.2pc to $1.491bn. Germany and the Netherlands registered modest increases, while France and Belgium saw contractions of 3.28pc and 5.69pc respectively.
In the post-Brexit landscape, Pakistan’s exports to the United Kingdom saw a marginal decline of 1.03% to $752.97m in 4MFY26, despite a strong 7.19% rise in FY25.
Analysts note that while overall EU demand for Pakistani goods is stabilising after recent volatility, export competitiveness will depend on maintaining market access and boosting value-added production in the textile sector.
