ISLAMABAD: Pakistan’s merchandise exports to North America grew 1.32 per cent to $6.503 billion in FY26 from $6.418bn the last year.

Imports from the region, however, rose 6.52pc to $3.822bn from $3.588bn.

Under the new agreement, Pakistan will import additional goods from the US to balance the trade deficit. As a result of this agreement, imports from the region, especially the US, grew sharply during the year.

However, exports to Canada declined. Imports under the agreement grew by nearly 39pc in FY26, while Pakistan’s exports to the US grew by a paltry 1.55pc.

Trump tariffs reshape trade landscape

The development comes amid policy shifts by US President Donald Trump, who has imposed additional tariffs while extending limited relief to Pakistan under a reciprocal arrangement.

Under the understanding, Pakistan is expected to increase imports of oil and other commodities from the US to narrow the bilateral trade gap.

The US remained the dominant market, accounting for nearly 94pc of Pakistan’s total exports to North America, with the remaining share going mainly to Canada and other countries.

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, driven mainly by higher textile and clothing shipments to the US, according to data compiled by the State Bank of Pakistan.

Within the region, exports to the US increased 1.55pc to $6.125bn in FY26 from $6.031bn a year earlier.

In FY25, exports to the US rose 10.72pc to $6.028bn, up from $5.444bn in the preceding year.

Exports to Canada contracted 2.30pc to $377.455m in FY26 from $386.347m a year ago.

Imports from the US surged 38.93pc to $3.265bn in FY26 from $2.350bn in the preceding year.

In the same region, Pakistan’s exports to Latin America declined by 8.32pc to $66.98m in FY26, down from $73.06m a year ago.

Similarly, exports to Central America dipped 2.11pc to 165.86m in FY26 from $169.43m the previous year. The main export destination was Mexico, which fell 6.25pc to $122.03m in FY26, down from $130.17m.

According to SBP data, exports to South America — Argentina, Brazil, Uruguay, etc., — rose 15pc to $402.39m in FY26 from $349.88m in FY25.

Published in Dawn, August 2nd, 2026