Pakistan’s goods and services exports will likely remain close to $40 billion in FY2026. However, the Pakistan export decline in merchandise shipments masks continued strength in the services sector. Robust growth in IT and other services offsets weakness in goods exports. Therefore, the overall export picture shows mixed but resilient performance.
Topline Securities reported that goods exports declined by around 6 percent during FY26. This represents a loss of nearly $2 billion. Merchandise exports fell to approximately $30 billion according to provisional data from the Pakistan Bureau of Statistics. Additionally, the State Bank of Pakistan will release its Balance of Payments data, which provides a more comprehensive measure. Officials expect these figures to arrive in the coming weeks.
A sharp correction in rice shipments drove the decline in goods exports. Rice prices soared exceptionally high in the previous year. However, rice exports fell by more than $1 billion as global prices normalized. India’s easing of export restrictions contributed to this decline. Furthermore, Pakistan shipped lower export volumes overall. So the rice sector accounted for most of the Pakistan export decline.
Exports of several other agricultural commodities and non-textile products remained under pressure during the year. Meanwhile, textile exports stayed broadly stable despite challenges. Value-added textile products showed improvement. However, the sector could not fully offset declines in other categories. Therefore, traditional export sectors struggled throughout FY26.
Pakistan’s services sector posted another strong year on the positive side. Services exports, led by IT and IT-enabled services, grew by nearly 20 percent. Therefore, technology services compensated significantly for merchandise export weakness. This growth helped keep the country’s combined goods and services exports close to $40 billion.
Topline Securities’ data shows Pakistan’s goods and services exports remained resilient. Exports rose from $38.5 billion in FY2024 to $40.4 billion in FY2025. FY2026 should close at around $40.1 billion. So despite weaker merchandise exports, the overall export trajectory remained positive.
The Pakistan export decline reflects structural shifts in global commodity markets. Rising competition in agricultural products pressures traditional exporters. However, Pakistan’s IT sector growth demonstrates successful economic diversification. Finally, strong services sector growth suggests the country is successfully transitioning toward higher-value exports.
