ISLAMABAD: Pakistan’s merchandise exports to North America saw a paltry growth of 7.15 per cent in the four months of 205-26, reaching $2.323 billion, up from $2.168bn in the corresponding months of the previous year.

The uptick in exports was largely fuelled by increased shipments to the United States, signalling a strengthening trade relationship between Islamabad and Washington. Nearly 94pc of Pakistan’s exports to North America were destined for the US market, with the remainder primarily directed toward Canada.

In FY25, Pakistan’s merchandise exports to North America rose by 9.97pc to $6.415bn, up from $5.833bn in the corresponding period of the previous year. The rise in exports to the region is primarily due to a surge in textile and clothing exports to the US, according to data compiled by the State Bank of Pakistan.

The revival of exports to the region was recorded in the current fiscal year, mainly due to a rise in textile and clothing exports following a slowdown in exports from Bangladesh and Vietnam.

The Trump administration has enacted a 19pc tariff on products from Pakistan, primarily targeting the textile sector. However, exporters are still reviewing the impact of the additional tariff on Pakistan’s exports to the United States.

In North America, Pakistan’s exports to the US stood at $2.188bn in 4MFY26 from $2.037bn over the corresponding months of last year, indicating a growth of 7.42pc.

Pakistan’s exports to North America were $6.028bn in FY25, up from $5.444bn in the corresponding months of last year, indicating a increase of 10.72pc.

Exports to Canada recorded a paltry rise of 2.94pc to $135.60m in 4MFY26 from $131.73m over the corresponding months of last year. In FY25, exports to Canada stood at $386.106m, down from $389.220m in the previous year, a 0.80pc decline.

Imports from North America stood at $728.25m in 4MFY26, down from $819.33m in the previous year, a decline of 11.12pc. Imports from North America stood at $2.588bn in FY25, up from $2.038bn the previous year, an increase of 26.98pc. Maximum imports are from the US.

Under the new agreement, Pakistan will import an additional $2.5bn worth of goods from the USA to balance the trade deficit.

In the same region, Pakistan’s exports to Latin America stood at $18.12m in 4MFY26, down from $18.78m in the previous year, a decline of 3.52pc. Pakistan’s exports to Latin America stood at $73.521m in FY25, down from $79.502m the previous year, a 7.52pc fall.

Pakistan’s exports to Central America stood at $62.23m in 4MFY26 from $60.35m over the previous year, a growth of 3.12pc. In Central America, Pakistan’s main export destination is Mexico, which stagnated at $46.44m in 4MFY26 from $46.27m over the corresponding months of last year.

According to SBP data, exports to South America — Argentina, Brazil, Uruguay, etc. — stood at $127.32m in 4MFY26, up from $111.72m over the corresponding months of last year, a rise of 13.96pc.

Published in Dawn, November 30th, 2025