Pakistan Exports to US Rise, Imports Surge
Pakistan exports to US rose 4.44 per cent to $1.716 billion in the July-September quarter of 2026-27, up from $1.643 billion a year ago. But imports from America surged far faster, rising 45.44 per cent to $659.23 million, as Islamabad moves to balance trade under a new agreement with Washington.
Pakistan’s merchandise exports to North America as a whole grew modestly by 4.65 per cent to $1.826 billion in the first quarter of FY27, up from $1.745 billion a year ago. Imports from the region, however, surged 60.58 per cent to $841.31 million from $523.91 million over the same period, according to data compiled by the State Bank of Pakistan.
Pakistan exports to US grow slowly as imports jump
The rise in imports reflects Islamabad’s efforts to ease trade imbalances with the region, under an agreement reached with the US. The development comes amid policy shifts by US President Donald Trump, who has imposed additional tariffs while extending limited relief to Pakistan under a reciprocal arrangement.
The US remained the dominant market, accounting for nearly 94 per cent of Pakistan’s total exports to North America, with the remaining share going mainly to Canada and other countries.
In FY26, imports under the agreement grew nearly 39 per cent, while Pakistan’s exports to the US recorded a meagre rise of 1.55 per cent. Exports to the US increased to $6.125 billion in FY26 from $6.031 billion in FY25. Imports from the US rose 38.93 per cent to $3.265 billion in FY26 from $2.350 billion in FY25.
Under the new agreement, Pakistan will import additional goods from the US to balance the trade deficit. As a result, imports from the region, especially the US, grew sharply during the year under review.
Canada and Latin America
Pakistan’s exports to Canada rose marginally by 7.53 per cent to $109.72 million in the first quarter of FY27 from $102.03 million a year ago. In FY26, exports to Canada shrank 2.3 per cent to $377.455 million from $386.347 million in FY25.
Exports to Latin America surged 118.64 per cent to $21.58 million in the first quarter of FY27, up from $9.87 million a year ago. In FY26, exports to the region fell 8.23 per cent to $66.98 million against $73.06 million in FY25.
Pakistan’s exports to Central America stayed flat at $45.27 million in the first quarter of FY27 from $44.99 million a year ago. In Central America, Pakistan’s main export destination is Mexico.
What it means for Pakistani exporters
The wider trade picture is mixed. Dawn reported on November 7 that Pakistan’s merchandise exports grew 8.52 per cent to $11.34 billion in July-October 2026, up from $10.45 billion a year earlier. The trade deficit widened to $14.63 billion in the same period, from $12.62 billion a year earlier, as imports rose faster than exports.
For exporters, the US remains the most important single market. Textiles, rice, leather goods and surgical instruments make up much of what Pakistan sells to America, and the 4.44 per cent quarterly rise shows demand is holding up despite the tariff shifts.
The bigger question is whether the import surge pays off. Buying more from the US is meant to ease trade friction and keep market access open for Pakistani goods.
The energy picture also shapes the trade balance. Brent crude fell as Trump signalled restraint on Iran, which eases the import bill, while a new Saudi-Pakistan private equity fund points to deeper Gulf investment ties. Karachi’s industrial base, which produces much of the export cargo, keeps expanding, and the stock market staged its strongest weekly rally in six months.
Frequently asked questions
How much did Pakistan export to the US in July-September?
Pakistan exported $1.716 billion worth of goods to the US in the July-September quarter of FY27, up 4.44 per cent from $1.643 billion a year earlier.
Why did imports from the US surge?
Imports from the US rose 45.44 per cent to $659.23 million as Pakistan moved to balance trade under a new agreement with Washington, which commits it to buying more American goods.
How big is the US in Pakistan’s North American trade?
The US accounts for nearly 94 per cent of Pakistan’s exports to North America. Total exports to the region reached $1.826 billion in the first quarter of FY27.
What happened to exports to Canada?
Exports to Canada rose 7.53 per cent to $109.72 million in the first quarter, though they shrank 2.3 per cent over the full FY26 year.
What is the wider trade picture?
Exports grew 8.52 per cent to $11.34 billion in July-October 2026, but the trade deficit widened to $14.63 billion as imports rose faster than exports.
