Pakistan's exports fall 14% in March as Middle East crisis disrupts trade

Pakistan’s merchandise exports declined by 14.4% in March, marking a second consecutive monthly drop as disruptions linked to the Middle East conflict affected external trade.

According to data from the Pakistan Bureau of Statistics (PBS), export proceeds fell to $2.26 billion in March from $2.65 billion a year earlier. On a month-on-month basis, exports declined by 0.55%.

Analysts said disruptions in the Strait of Hormuz have increased shipping costs and affected supply chains, adding pressure on exporters. They warned that continued conflict could further impact trade routes, demand in regional markets and overall export performance.

Exports have remained under pressure throughout the current fiscal year, posting negative growth in most months since August, except for July and January. Declines were recorded in December (20.4%), November (14.54%), August (12.49%), February (8.76%), October (4.46%) and September (3.88%).

For the first nine months of FY26, exports declined by 8% to $22.73 billion compared to $24.72 billion in the same period last year.

The government had introduced measures, including reductions in energy costs, to support exporters, but the sector continues to face challenges from subdued global demand and high domestic costs.

In FY25, export proceeds had increased by 4.7% to $32.1 billion, compared to $30.68 billion in the previous year.