Pakistan's exports declined by 7.78% in rupee terms during the first half of FY2025-26, while imports rose by over 13%, widening the trade gap and underscoring mounting pressure on the country's external account.

Provisional figures released by the Pakistan Bureau of Statistics show exports amounted to Rs4,265,642m during July-December 2025-26, compared with Rs4,625,449m in the corresponding period of the previous fiscal year.

The downward trend sharpened in December. On a year-on-year basis, shipments dropped 21.44% to Rs635,970m, down from Rs809,554m in December 2024. Compared with November 2025, exports fell 6.41% from Rs679,556m.

Textile-related products dominated December's export basket. Knitwear led at Rs104,270m, followed by readymade garments at Rs100,179m and bed wear at Rs62,076m. Other significant contributors included rice (Rs37,296m), cotton cloth (Rs31,150m), towels (Rs21,833m), made-up excluding towels and bedwear (Rs15,818m), cotton yarn (Rs15,276m), petroleum products excluding top naphta (Rs15,048m), and meat and meat preparations (Rs13,686m).

Imports, meanwhile, expanded notably. During July-December 2025-26, inbound purchases totalled Rs9,723,337m, up 13.12% from Rs8,595,413m a year earlier.

In December alone, imports reached Rs1,714,983m, marking a 14.97% increase over November's Rs1,491,677m and a 4.44% rise compared with Rs1,642,039m in December 2024.

Petroleum-related items accounted for a large share of December's import bill. Petroleum products were valued at Rs179,645m and crude oil at Rs151,111m. Other major categories included palm oil (Rs85,881m), liquefied natural gas (Rs77,529m), plastic materials (Rs73,657m), iron and steel (Rs61,022m), iron and steel scrap (Rs55,075m), motor cars in CKD/SKD form (Rs49,670m), electrical machinery and apparatus (Rs45,832m), and mobile phones (Rs44,729m).

The latest data point to a contraction in export earnings alongside accelerating imports, intensifying the imbalance in Pakistan's trade position during the first half of the fiscal year.