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Pakistan's exports surge 31% in July, marking strongest monthly gain in recent years

By The South Asia Times

ISLAMABAD – Pakistan's exports recorded a sharp 31% month-on-month surge in July 2026, marking one of the strongest monthly increases in recent years and signaling a promising start to the new fiscal year, according to provisional data released by the Pakistan Finance Ministry.

Exports rose to $2.94 billion in July, up from $2.24 billion in June, while also growing 9.5% year-on-year from $2.68 billion in July 2025. The textile sector, which accounts for approximately 62% of the country's total exports, led the growth with a 9% year-on-year increase to $1.83 billion.

Imports remained broadly stable at $6.89 billion, down just 0.2% month-on-month, though they rose nearly 18% year-on-year from $5.84 billion. The trade deficit narrowed over 15% month-on-month to $3.95 billion, driven primarily by the sharp rebound in exports.

Advisor to the Finance Minister Khurram Schehzad described the export growth as an "encouraging early sign" of the FY27 Budget's focus on exports, competitiveness, lower cost of doing business, and private sector-led growth. The budget, presented in June, introduced a series of export-friendly measures including an Rs71 billion export financing subsidy, concessional financing at 4.5%, and the abolition of advance tax and super tax for exporters.

The July data points to strengthening external sector momentum and reinforces Pakistan's transition towards a more competitive, export-led and sustainable growth model. The government has identified agriculture, construction, and IT sectors as major growth engines, with IT exports projected to reach $4.5 billion in the coming year.

Economists noted that while the monthly performance is encouraging, the year-on-year trade deficit expansion of 25% to $3.95 billion warrants continued monitoring, particularly as imports of consumer goods rose over 27% . Sustained export growth, especially in value-added sectors, will be critical for containing external sector pressures in the months ahead