Islamabad, July 6, 2025 – Pakistan’s export landscape is shifting—and the numbers tell an interesting story. According to the Economic Survey of Pakistan for FY 2024-25, the country’s export share to the United States has grown, while it has declined with China.
Let’s unpack the details.
During July–March FY 2025, the United States maintained its top spot as Pakistan’s largest export destination. The export share to the US rose slightly—from 17% last year to 18%—a modest but meaningful gain. This reflects evolving demand patterns and possibly better market access for Pakistani textiles, apparel, and value-added goods in the US.
In contrast, the export share to China dropped to 8%, down from the previous year. While China remains a vital trading partner, especially for exports of textiles, agricultural items, and industrial products, the decline signals changing demand or increased competition in those categories.
Pakistan’s trade performance with other key markets like Germany, the UAE, and the UK also showed mixed results. Notably, Germany’s export share improved, reflecting Pakistan’s growing engagement in high-value industrial sectors.
However, the survey highlights a bigger concern: Pakistan’s export share remains heavily concentrated in just a handful of countries. This makes the country’s trade position vulnerable to economic or political shifts in those regions. Expanding export markets and diversifying product lines are essential for reducing risk and increasing resilience.
On the import side, dependency is even higher. China alone accounts for 33% of Pakistan’s imports—up from 30% last year—mainly due to machinery, chemicals, and consumer goods. The United States, by comparison, contributes only 3% to Pakistan’s imports, showing limited engagement on that front.
Pakistan’s widening trade deficit, especially with China, underscores the urgency of rebalancing trade flows. Boosting exports and enhancing competitiveness through better infrastructure, favorable policies, and industrial reforms will be key.
In short, while the rising export share to the US is a positive sign, the decline in trade with China and the overall concentration of export share remind us that Pakistan must adopt a more strategic, diversified trade approach for sustainable growth.