HAMZA HABIB

ISLAMABAD: Exports from the country declined 3.83 percent to USD 7.60 billion in the first quarter of FY26 as exports for the second consecutive month showed a downward trend.

According to the statistics issued by the Pakistan Bureau of Statistics, the exports from the country in July-September FY26 remained at USD 7.60 billion compared to USD 7.91 billion in the corresponding period of last year, showing a decline of 3.83 percent. Whereas imports during the first quarter of FY26 registered a growth of 13.49 percent, increasing to USD 16.97 billion compared to USD 14.95 billion in the corresponding period of last year.

In September FY26, the exports stood at USD 2.50 billion compared to USD 2.84 billion in the corresponding period last year, showing a decline of 11.71 percent. Whereas imports stood at USD 5.84 billion compared to USD 5.13 billion in the corresponding period of last year. The trade deficit in September FY26 jumped to USD 3.34 billion compared to USD 2.3 billion in the corresponding period of last year, registering an astonishing increase of 45.83 percent.

However, because of the lethargic performance of the export sector last month, exports in September, on a month-on-month (MoM) basis, increased by 3.64 percent. Exports in September remained USD 2.5 billion compared to USD 2.42 billion in August. Whereas imports, on a MoM basis, increased by 10.53 percent as they swelled to USD 5.84 billion in September FY26 compared to USD 5.29 billion in August. The trade deficit on a MoM basis increased by 16.33 percent as it increased to USD 3.34 billion in September compared to USD 2.87 billion in August.

The country’s exports declined mainly because of a drop in textile exports, which account for around 60 percent of total export proceeds. According to the former chairman of All Pakistan Textile Mills Association, Asif Inam, the declining prices of cotton in the international market and higher energy costs kept the exports down. “During the last year or so, the cotton prices declined from USD 1.50 to 64 cents per pound and, resultantly, squeezed the profit margins of textile manufacturers,” he observed.

He said that if the exporters get electricity at the rate of 7 cents instead of the existing rate of 12-13 cents, the textile exports could touch the USD 25 billion mark within two to three years.

Meanwhile, as per statistics of the PBS, the exports of services in the July-August FY26 period increased by 11.73 percent to USD 1.4 billion compared to $1.25 billion in the corresponding period of last year. Whereas imports of services in the July-August period increased by 15.37 percent to USD 2.1 billion compared to USD 1.85 billion in the corresponding period of last year.

The services trade deficit in July-August reached USD707 million compared to USD 604.8 million in the corresponding period of last year, registering an increase of 16.94 percent.