Middle East Tensions Trigger $1.2 Billion Decline in Pakistan’s Exports, Total Volume Drops from $32 Billion to $30.8 Billion
ISLAMABAD: The regional instability and worsening relations between the United States and Iran have started to impact Pakistan’s exports, resulting in a national drop of more than $1.2 billion in exports compared with the previous fiscal year.
Official economic figures show that total export value of Pakistan for FY25-26 reduced from more than $32 billion to $30.8 billion. Rice exports were the worst hit, declining by $1.02 billion, while other agricultural products such as textile exports and sugar exports were also badly affected.
Gulf, Central Asian and Afghan Trade was also affected.
In addition, trade statistics show a decrease of €100 million of exports to the Gulf Cooperation Council (GCC) countries, and exports to Central Asia countries and Afghanistan suffered a dramatic drop of up to 59 percent.
International shipping routes, freight logistics and supply chain costs have been significantly affected by continuing geopolitical tension throughout the region, trade authorities reported. The government meanwhile is doggedly working to keep reducing energy tariffs, lower domestic taxes and put in place export relief policies to help the industrial sector.