Pakistan exports climb 7.7% to $8.5bn in first quarter

Pakistan’s merchandise exports increased by 7.7% to $8.5 billion during the first quarter of fiscal year 2026-27, indicating stronger external trade performance despite continued disruption in global markets and supply chains. Exports in September alone rose to approximately $3 billion, registering double-digit annual growth.

Combined exports of goods and services reached $11.2 billion during July through September, representing an 11% increase from the corresponding period a year earlier. Services exports expanded by 22.8%, while information and communication technology exports reached $1.2 billion, highlighting the growing contribution of digitally delivered services.

Several merchandise categories supported the improvement. Food exports rose by 17.1%, petroleum products by 44.5%, engineering goods by about 5% and textiles by 2.5%. The figures show that export growth was distributed across multiple sectors, although Pakistan’s traditional textile industry continued to expand more slowly than some emerging categories.

Workers’ remittances provided another major source of foreign exchange, increasing by 14% to $10.9 billion from $9.5 billion in the same quarter of the previous fiscal year. September inflows reached $3.6 billion, while Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States remained among the leading remittance corridors.

Imports also increased, rising by more than 14% to approximately $17.8 billion during the quarter as purchases of machinery and industrial raw materials expanded. The increase points to stronger demand for production inputs but also means Pakistan must accelerate exports to prevent the trade gap from placing renewed pressure on the external account.

Foreign direct investment reached nearly $720 million during the first quarter, recording annual growth of about 20%. The central bank’s foreign exchange reserves stood at $21.5 billion in October, while the rupee was valued at around Rs278.6 against the US dollar on October 28, according to the government’s economic indicators.

Domestic revenue and credit data presented a mixed but broadly improving picture. Federal tax collection exceeded Rs3 trillion during the quarter, agricultural lending reached Rs540.5 billion and financing to farmers grew by nearly one-third compared with the same period last year. The government also reported a primary budget surplus despite an overall fiscal deficit.

Inflation remained a significant challenge, averaging just above 10% during the first quarter and reaching 10.3% in September. The policy rate stood at 12% after the central bank’s latest decision, reflecting continued concern about price pressures, international energy costs and the effect of geopolitical uncertainty on Pakistan’s import bill.

Industrial and corporate indicators showed modest expansion. Large-scale manufacturing output grew during the opening months of the fiscal year, while more than 15,000 new companies were registered in the quarter, an increase of over 37% from a year earlier. The stock market also remained elevated, supported by improving investor participation and stronger sentiment in several major sectors.

The government is seeking to build on the figures through district-level export planning, deeper value addition and wider access to international markets. Sustaining the momentum will require faster growth in competitive exports, continued investment in productive capacity and careful management of inflation and imports so that higher economic activity translates into durable external stability.