Top Export Market
The United States retained its position as Pakistan’s top export destination in May, with exports amounting to $516.15 million, according to data released by the State Bank of Pakistan. This marked a 4.6% increase compared to the same month last year, when exports to the U.S. totaled $493.61 million. The rise reflects strengthening trade ties and continued demand for Pakistani goods in American markets.
Following the U.S., China stood as the second-largest export destination for Pakistan. However, exports to China declined by 6%, totaling $199.53 million in May 2026, compared to $212.37 million in the same month of 2025. The decline is attributed to slowing demand and shifting trade dynamics between the two countries.
The United Arab Emirates, specifically Dubai, was third on the list. Pakistan exported goods worth $177.26 million to the UAE in May, a 5.6% decrease from $187.8 million in the same period last year.
Despite the year-on-year decline, exports to Dubai saw a monthly improvement, increasing by 9.8% compared to April 2026, indicating a rebound in demand or seasonal factors influencing trade flow.
The United Kingdom ranked fourth among Pakistan’s export destinations. In May, exports to the UK stood at $172.17 million, showing a slight year-on-year decrease of 3%. Meanwhile, exports to Germany were recorded at $132.28 million—a 9.4% decline compared to the same month in 2025. Similarly, Spain experienced an 8.9% drop in imports from Pakistan, with figures falling to $122.51 million.
Exports to the Netherlands (Holland) also saw a significant decline, falling by 12.6% to $112.93 million.
On a month-over-month (MoM) basis, exports to the U.S. rose by 4.6%, and China by 4%, indicating improved trade performance relative to April. Exports to the UAE showed a notable 9.8% MoM increase, potentially due to growing commercial activity or logistical improvements.
Looking at cumulative figures for the first 11 months of fiscal year 2026 (11MFY26), the U.S. remained Pakistan’s largest export partner, with total receipts amounting to $5.55 billion, compared to $5 billion during the same period in FY25—an 11% rise.
China, on the other hand, saw a sharp decline in cumulative exports, totaling $2.27 billion in 11MFY26—an 11.2% decrease compared to the previous year. Despite the overall contraction, China maintained its position as the second-largest export market.
The UK emerged as the third-largest export destination on a cumulative basis, with exports valued at $1.99 billion during 11MFY26, reflecting an increase from $1.86 billion recorded in 11MFY25.
The data reveals both challenges and opportunities in Pakistan’s export landscape. While the United States continues to grow as a reliable trading partner, fluctuations in trade with China and European countries highlight the need for diversification and strengthened trade diplomacy.
