Key Points
- US accounts for nearly 95% of exports to North America
- Imports jump sharply amid $2.5bn US trade deal
- South America exports surge by over 19%
ISLAMABAD: Pakistan’s exports to North America recorded a steady increase during the first eight months of FY2025-26, primarily driven by higher demand from the United States, according to official data.
Merchandise exports to the region rose by 3.21 per cent to $4.411 billion in July–February FY2025-26, compared to $4.274 billion in the same period last year.
The growth underscores a gradual strengthening of trade ties between Islamabad and Washington, even as exports to Canada declined.
The United States continued to dominate as Pakistan’s largest export destination in North America, accounting for nearly 95 per cent of total regional exports.
Shipments to the US climbed 3.62 per cent to $4.156 billion during the review period, up from $4.011 billion a year earlier. The increase was largely supported by sustained demand for textiles and clothing.
Yearly, the upward trend has remained consistent. In FY2024-25, Pakistan’s exports to North America expanded by 9.97 per cent to $6.415 billion, compared to $5.833 billion in the preceding year. Exports to the US alone rose 10.72 per cent to $6.028 billion, reflecting robust performance in key export sectors.
In contrast, exports to Canada registered a decline of 2.64 per cent during the first seven months of FY26, falling to $226.28 million from $232.42 million in the corresponding period last year. The downward trend persisted on an annual basis as well, with exports to Canada decreasing by 3.26 per cent in FY25.
Meanwhile, Pakistan’s imports from North America witnessed a sharp rise, largely due to increased purchases from the United States under a new trade arrangement. Imports surged 34.4 per cent to $2.239 billion in July–February FY26, compared to $1.663 billion a year earlier.
Under the agreement, Pakistan is set to import an additional $2.5 billion worth of goods from the US in the current fiscal year to help manage the trade imbalance. Consequently, imports from the US alone jumped 27.78 per cent to $1.918 billion during the period under review.
Beyond North America, Pakistan’s export performance across Latin and Central America remained largely subdued. Exports to Latin America showed marginal growth of 0.26 per cent to $48.67 million, while shipments to Central America dipped slightly by 0.58 per cent to $113.10 million. Mexico remained the principal market in Central America, although exports there fell by 4.35 per cent.
In contrast, exports to South America demonstrated a notable improvement. Shipments to countries such as Argentina, Brazil, and Uruguay rose by 19.49 per cent to $271.52 million during the first eight months of FY26, indicating emerging opportunities in the region.
Overall, the data highlights a mixed trade outlook, with steady gains in the US market and South America partially offset by weaker performance in Canada and other regional markets, alongside a significant rise in imports driven by strategic trade commitments.
