By Moaaz Manzoor

Pakistan’s exports to the United States recorded modest growth during the July–December period following the April 2025 reciprocal tariff announcement by the US administration, with trade data continuing to show heavy reliance on textiles and apparel alongside mixed performance across other sectors.

According to data available with Wealth Pakistan, textiles and apparel exports rose from $2,377 million in FY25 (Jul–Dec) to $2,470 million in FY26 (Jul–Dec), reflecting a growth of about 4 percent. The increase came despite uncertainty created by the post-announcement tariff environment, with textiles remaining the backbone of Pakistan’s export relationship with the United States.

Other export segments showed uneven trends in the same period. Manufacturing and mining exports declined from $434 million to $422 million, registering a contraction of around 3 percent and indicating pressure on non-textile industrial exports. In contrast, agri and food exports improved, rising from $91 million to $99 million, marking growth of about 9 percent.

Overall, Pakistan’s total exports to the United States during the July–December comparison period increased from $2,902 million to $2,991 million, showing growth of approximately 3 percent following the reciprocal tariff announcement.

A broader sectoral snapshot for FY25 further illustrates the underlying structure of bilateral trade. Pakistan’s exports to the United States were overwhelmingly dominated by textiles and apparel at $4,768 million, accounting for 82 percent of total exports. Manufacturing and engineering exports stood at $885 million, contributing 15 percent, while agricultural exports were recorded at $183 million, making up 3 percent. Total exports to the US during the year amounted to $5,836 million, underscoring the concentration of export earnings in a single sector.

On the import side, Pakistan’s purchases from the United States totaled $1,763 million. Raw materials and intermediate goods formed the largest share at $1,730 million, accounting for about 60 percent of imports. Consumer goods imports stood at $395 million (14 percent), while capital goods imports were recorded at $362 million (13 percent). Food imports amounted to $241 million (8 percent), and energy imports, including oil, gas and coal, were recorded at $149 million (5 percent), according to data cited from the Federal Board of Revenue.

The trade data comes against the backdrop of changes in US tariff policy. In April 2025, the US government announced a reciprocal tariff framework introducing a 10 percent baseline tariff, along with additional country-specific measures. For Pakistan, an additional reciprocal tariff of 29 percent was proposed, though its implementation was later suspended under a 90-day pause to allow negotiations.

During the pause period, Pakistan and the United States held trade discussions aimed at addressing tariff levels and maintaining export flows. Following these engagements, a US executive decision revised Pakistan’s additional reciprocal tariff to 19 percent, replacing the earlier proposed rate and defining the post-negotiation tariff structure.

Despite the revised tariff providing greater clarity for exporters, post-announcement data suggest Pakistan’s export performance remains closely tied to textiles and apparel, with limited diversification into other sectors. The figures highlight both the resilience of Pakistan’s core export industry and the persistent structural imbalance in trade with the United States, as imports remain concentrated in high-value inputs and intermediates essential for domestic production.

 
Credit: INP-WealthPk