ISLAMABAD (Web Desk) -Pakistan’s merchandise exports dropped sharply by 20.41 per cent to $2.317 billion in December 2025, compared with $2.911 billion in the same month last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday. The decline marks the fifth consecutive month of contraction in the ongoing fiscal year.
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On a month-on-month basis, export receipts also weakened, registering a decrease of 4.26 per cent in December. Despite the sustained downturn, the slowdown has yet to trigger serious concern among policymakers, as no high-level meeting has been convened to assess the underlying causes.
The export slump has persisted since August of the current fiscal year, with July being the only exception when shipments recorded a year-on-year increase of 16.43 per cent.
Data shows that export earnings have been on a steady downward path, with a 14.54 per cent decline in November, following contractions of 4.46 per cent in October, 3.88 per cent in September, and 12.49 per cent in August. The continued fall highlights mounting challenges facing Pakistan’s external trade amid global and domestic headwinds.
Why are exports falling?
Experts say Pakistan’s exports are falling due to a mix of domestic weaknesses and global pressures. High energy costs, expensive financing, and frequent policy changes have increased production costs, making Pakistani goods less competitive. Supply chain disruptions and reduced industrial capacity have also hurt output. On the global side, slower economic growth in key markets has weakened demand, while intense competition from regional exporters has squeezed margins. An overreliance on a narrow range of low-value products and limited diversification into value-added goods further constrain export growth. Delays in refunds and regulatory hurdles have also dampened exporter confidence.
