ISLAMABAD: Exports of non-textile goods plunged 13.77 per cent to $12.21 billion in FY26, down from $14.16bn in the preceding year, 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 during FY26, according to data compiled by the Pakistan Bureau of Statistics.

The agriculture sector bore the brunt of the slowdown, with export earnings tumbling 29.49pc to $5.02bn in FY26, down from $7.12bn 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 3.15pc uptick, rising to $7.19bn from $6.97bn over the same period last year. Within this segment, engineering goods posted a 5.64pc increase, led by stronger shipments of industrial machinery, transport equipment, electric fans, auto parts and rubber tyres.

Cement exports also showed resilience in volume terms. During FY26, export value was up 4.02pc on year-on-year basis (YoY). However, a dip of 4.07pc was recorded in quantity terms on a YoY basis.

In the footwear segment, export performance presented a mixed picture. Overall footwear exports dipped by 0.47pc during FY26. The increase of 33.02pc in shipments was categorised as other footwear. The increase in this segment helped offset declines in traditional categories. Leather footwear exports fell by 5.22pc, while a steepest contraction was recorded in canvas footwear, where exports dropped by 33.02pc.

The leather manufacturing sector showed a marginal increase of 0.64pc in FY26 from a year ago. The slight increase was primarily driven by a 7.92pc increase in leather garments. However, leather gloves posted negative growth of 5.15pc, while other leather manufacturers were up by 5.78pc.

In contrast, exports of raw leather declined by 6.35pc, underscoring continued weakness in unprocessed- and semi-processed segments.

Pakistan is one of the main suppliers of global surgical instruments. However, the export value of these instruments remained negligible as famous brands remarketed these in the Western countries. It recorded a negative growth of 0.03pc during the months under review.

The export of carpets and rugs declined by 20.22pc in FY26 compared with the same period a year earlier. The export of sports goods surged by 10.08pc during the review period, driven largely by a 11.72pc increase in football shipments.

The export of gur products (which are not classified under the food category) saw a decline of 2.68pc in FY26 from a year ago. The decline is mainly because of the closure of Torkham border.

Published in Dawn, July 21st, 2026