By Farooq Awan

Pakistan’s overall exports declined by 7% during the first seven months of fiscal year 2025–26, falling to $18.19 billion compared to $19.58 billion recorded in the same period of FY25, according to the Monthly Report of Pakistan’s Textile & Apparel Exports prepared by the Pakistan Textile Council (PTC).

The data reflects a cumulative contraction of approximately $1.39 billion during July–January FY26, highlighting continued external sector pressures. However, the latest monthly figures indicate a strong recovery at the start of the calendar year.

In January 2026, total exports stood at $3.06 billion, marking a 4% year-on-year increase compared to $2.95 billion in January 2025. On a month-on-month basis, exports surged by 35%, rising sharply from $2.27 billion recorded in December 2025. The increase of nearly $790 million over December represents the greatest monthly improvement during the July–January period.

The January performance marks the highest monthly export value recorded in FY26 so far, signaling renewed momentum after a relatively subdued first half of the fiscal year. The $110 million year-on-year increase for January further reinforces signs of stabilization in export activity.

While the overall July–January numbers remain below last year’s level, the latest data suggests that export growth is beginning to regain traction. Analysts note that sustained monthly improvements will be critical to offset the cumulative shortfall recorded earlier in the fiscal year.

The report attributes the figures to calculations based on data from the Pakistan Single Window (PSW) and the Pakistan Bureau of Statistics (PBS). It provides a comprehensive overview of Pakistan’s export performance, including overall exports, textile and apparel trends, destination markets, and policy recommendations.

Despite volatility during the fiscal year, the upward movement in both year-on-year and month-on-month indicators in January offers a positive signal for the external sector. Exporters will now be closely watching whether this recovery trend continues in the coming months, particularly amid global demand fluctuations and domestic cost pressures.

The July–January FY26 data underscores a mixed picture: cumulative exports remain under pressure, yet the sharp rebound in January suggests improving export activity. Sustained gains in the remaining months of the fiscal year will be essential to narrow the gap with FY25 levels and strengthen Pakistan’s external account position.

Credit: INP-WealthPk