KARACHI: Exports to the US recorded a sharp 40 per cent increase in July, driven by strong demand for textile products in the US retail sector and the carryover of shipments from June of the previous fiscal year, according to data released by the Trade Development Authority of Pakistan (TDAP) on Wednesday.
The country exported goods worth $560 million to the US market in July this fiscal year (FY26), compared with $401 million in the same month of the previous year.Exporters attributed the surge in shipments to the US to multiple factors and called for urgent reforms to sustain the growth trend.
“Pakistan’s textile exports surged in July 2025, partly due to shipment carryovers from June amid logistical challenges. More importantly, US retailers are bullish on Pakistan as the only country after China and India with a complete textile value chain,” said Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association.
He added that this presented a unique opportunity for the country. “To sustain momentum and reach $30 billion in exports, the government must urgently roll out reforms, including regionally competitive energy tariffs, elimination of cross-subsidies and excessive advance taxes, automation of refunds, and provision of Rs1.2 trillion in working capital — backed by a clear five-year roadmap, rather than mere rhetoric,” he asserted.
Exports to the United Kingdom also posted substantial growth of 33 per cent, reaching $217 million compared with $163 million in the corresponding period.China was the third-largest destination for Pakistani products, with exports rising 12 per cent to $173 million in July, up from $154 million a year earlier.
Exports to several European nations also recorded strong growth: Spain (29 per cent), Germany (20 per cent) and the Netherlands (25 per cent). Italy, Belgium and Poland also registered increases during the month.
In the Middle East, exports to the United Arab Emirates rose by 23 per cent, while shipments to Saudi Arabia grew by 5.0 per cent.Within South Asia, exports to Sri Lanka surged 35 per cent, while Bangladesh saw a modest 3.0 per cent increase. However, exports to Malaysia, Vietnam and Australia fell in the first month of the current fiscal year.
