ISLAMABAD: Exports of non-textile goods plunged 16.6 per cent to $8.25 billion in the first eight months of FY26 from $9.89bn a year ago as shipments of agricultural produce and value-added products suffered steep declines.

The downturn underscores mounting pressure on key sectors, particularly agriculture, where lower volumes and weakening external demand have eroded earnings. By contrast, only marginal gains were recorded in leather, footwear, and engineering products 8MFY26, according to data compiled by the Pakistan Bureau of Statistics.

The agriculture sector bore the brunt of the slowdown, with export earnings tumbling 34.4pc to $3.39bn in 8MFY26, down from $5.17bn a year earlier. The simultaneous drop in both value and volume of farm commodities highlights the twin pressures of softer international prices and waning demand in major markets.

In contrast, non-agricultural exports managed a modest 2.96pc uptick, rising to $4.86bn from $4.72bn over the same period last year. Within this segment, engineering goods posted a 5.05pc increase, led by stronger shipments of industrial machinery, transport equipment, electric fans, auto parts, and rubber tyres.

Proceeds dip to $8.25bn in July-February FY26

Cement exports also showed resilience in volume terms during July-February FY26. Export value was up 10.03pc year-on-year. However, a 0.59pc dip was recorded in quantity terms.

In the footwear segment, export performance was mixed. Overall footwear exports rose by 4.23pc during 8MFY26, largely supported by a sharp 29.72pc surge in shipments categorised as other footwear. The increase in this segment helped offset declines in traditional categories. Leather footwear exports fell by 1.50pc, while the steepest contraction was recorded in canvas footwear, where exports dropped by 50.15pc.

The leather manufacturing sector showed a marginal decline of 0.04pc in 8MFY26 from a year ago. The slight decline was primarily driven by a 6.14pc decline in leather gloves. However, leather garments posted growth of 7.51pc, and other leather manufacturers posted 6.50pc growth.

In contrast, exports of raw leather declined by 5.92pc underscoring continued weakness in unprocessed and semi-processed segments.

Pakistan is one of the main suppliers of surgical instruments globally. However, the export value of these instruments remained negligible as famous brands re-marketed these in Western countries. It recorded a negative growth of 1.12pc during the period under review.

Traditional handicraft segments also faced pressure. Exports of carpets and rugs declined by 11.20pc in 8MFY26 compared with the same period a year earlier. In contrast, the sports goods industry delivered a stronger performance. Exports surged by 13.26pc during the review period, driven largely by a 18.98pc increase in football shipments.

The export of gur products (which are not classified under the food category) declined by 24.15pc in 8MFY25 compared with a year ago. The decline is mainly because of the closure of the Torkham border.

The export of jewellery dipped by 52.70pc followed by a 75.60pc fall in the export of molasses and handicrafts by 69.41pc and furniture 0.30pc. However, gem exports grew by 83.42pc during 8MFY26 compared with a year ago.

Published in Dawn, March 25th, 2026