KARACHI: Pakistan’s exports to the United States fell by 8% in November, amounting to $439 million, down from $476 million in the same month last year, according to data from the Trade Development Authority of Pakistan (TDAP).
Despite Pakistan’s tariff advantage, with the US imposing a 19% tariff on Pakistani goods compared to up to 50% on Indian exports, Pakistan has seen a decline in its market share.
India’s exports to the US, on the other hand, experienced a strong 22% growth, reaching over $38 billion in November 2025, contrasting with Pakistan’s struggles.
In the first five months of the fiscal year 2026, Pakistan’s total exports to the US reached $2.5 billion, marking a 4% increase from the previous year. However, the November downturn signals deeper concerns over the competitiveness of Pakistani products despite lower tariffs.
Experts point to structural challenges, including high production costs due to elevated utility tariffs and raw material prices, as significant barriers to capitalizing on the favorable tariff environment.
A report from the Saarc Chambers of Commerce and Industry and the South Asian Federation of Accountants warns that Pakistan could face a 30% decline in exports to the US due to the high tariff burden.
The report also highlights the risks for industrial employment, particularly in key textile hubs such as Faisalabad, Karachi, and Lahore, with the potential for significant layoffs. However, it also suggests that diversifying into regional markets like India, Bangladesh, Sri Lanka, and the GCC could provide an additional $2-3 billion in annual exports.
Pakistan’s trade relations with the US are also hindered by rigid tariffs and non-tariff barriers, including customs valuation issues, restrictions on genetically engineered products, and halal certification requirements. Additionally, Pakistan’s position on the US Special 301 Watch List due to weak intellectual property enforcement complicates access to the US market.
