Pakistan’s exports to the United States have continued their downward trajectory, marking the third consecutive month of decline and underscoring growing pressures on the country’s external trade performance, according to a Gwadar Pro's report on Wednesday. As Pakistan’s largest export destination, the sustained softening of shipments to the U.S. signals broader challenges for key export sectors and raises concerns about momentum in the months ahead.

As per the Trade Development Authority of Pakistan’s (TDAP) December 2025 Monthly Trade Report, Pakistan’s goods exports fell sharply to $2.317 billion in December FY2025-26, compared with $2.911 billion in December FY2024-25, reflecting a 20.41% year-on-year decline. During the same month, goods imports increased to $6.022 billion from $5.904 billion, up 2%, pushing the monthly trade deficit to $3.705 billion, widening from $2.993 billion last year, with an increase of 23.79%.

For the first half of the fiscal year (July-December FY2025-26), Pakistan’s goods exports stood at $15.184 billion, down from $16.631 billion in the corresponding period last year, posting a decline of 8.70%. In contrast, goods imports surged to $34.388 billion from $30.902 billion, registering an increase of 11.28%. As a result, the cumulative trade deficit expanded significantly to $19.204 billion during July-December FY2025-26, compared with $14.271 billion in the same period last year, marking a sharp 34.57% deterioration in the external trade balance.

The pressure on exports is particularly evident in Pakistan’s shipments to the United States, which have declined for three consecutive months. Exports to the U.S. slipped to $447 million in December 2025 from $449 million in December 2024, marking a marginal decline of around 0.45%. This followed a sharper contraction in November 2025, when exports fell to $439 million compared with $476 million in November 2024, a decline of 8%.

Earlier, in October 2025, exports stood at $517 million, down from $523 million in October 2024, registering a 1% decline. Prior to the three-month slide, export performance showed mixed trends. Shipments to the U.S. rose in September 2025 to $528 million, up from $477 million in September 2024, posting an 11% increase. However, exports had weakened in August 2025, falling to $501 million compared with $577 million in August 2024, reflecting a 13% decline.

Pakistan’s exports to the United States began losing momentum following the introduction of Washington’s reciprocal tariff in August, with the impact becoming increasingly visible in subsequent months.

Industry bodies had earlier cautioned that the higher duties would weigh heavily on Pakistan’s export competitiveness, particularly in the textile sector, which accounts for a large share of shipments to the U.S.

The SAARC Chamber of Commerce & Industry (SCCI) and the South Asian Federation of Accountants (SAFA) had warned that the tariff measures could trigger a 20-30 percent decline in export volumes, citing shrinking margins, order cancellations, and reduced-price competitiveness.

The downturn recorded now appears to validate those projections, suggesting that the 19 percent tariff is beginning to materially affect export earnings and trade flows, adding to pressures on Pakistan’s external accounts and broader economic outlook.

Credit: Independent News Pakistan (INP) — Pak-China