Middle East conflict dents exports

Pakistan's exports have started showing the adverse impact of the deteriorating situation in the Middle East, with the country's overall export earnings declining by more than $1.2 billion during the last financial year compared with the previous year. According to available data, Pakistan's total exports fell from around $32 billion in fiscal year 2024-25 to $30.8 billion in FY2025-26, reflecting a decline of more than $1.2 billion. Rice exports recorded the largest drop, declining by around $1.02 billion during the period. Exports of textile products, sugar and other agricultural commodities also remained under pressure. The data further showed that exports to Gulf countries declined by around $100 million, while exports to Central Asian countries and Afghanistan recorded a decline of up to 59%. Officials attributed the deterioration in export performance to the impact of regional tensions on trade routes, transportation and logistics costs. The disruption has affected the movement of goods and increased the cost of transporting export consignments to key regional markets. Officials said the government is continuing efforts to reduce energy costs and taxes to provide relief to businesses and support economic activity.