ISLAMABAD: The impact of rising regional tensions, particularly the ongoing tensions between the United States and Iran, is increasingly being felt by Pakistan’s economy, with the country’s export sector facing a significant setback.
According to the latest economic data, Pakistan’s exports declined by more than $1.2 billion compared with the previous fiscal year.
Overall Export Volume Declines
Official sources said Pakistan’s total exports fell from around $32 billion in fiscal year 2024-25 to $30.8 billion in fiscal year 2025-26.
Economic observers have linked the decline to security concerns in the region and disruptions to supply chains, which have affected trade and commercial activity.
Major Export Sectors Affected
The decline was recorded across several key export sectors.
Rice exports suffered the largest drop, declining by around $1.02 billion. Other major export categories, including textiles, sugar and various agricultural commodities, were also affected.
Regional Trade Takes a Hit
The decline was also reflected in Pakistan’s exports to several regional markets.
Exports to Gulf countries fell by around $100 million, while shipments to Central Asian countries and Afghanistan declined by as much as 59%.
Government Efforts to Support Exports
Economic officials said the escalating regional tensions have increased challenges related to international trade, freight costs and logistics.
The government is continuing efforts to provide relief to industries, stabilize energy costs and reduce taxes in order to support businesses and help revive the country’s export sector.
