Pakistan's exports posted a strong start to FY2026-27, with total exports rising 10% year-on-year to $2.96 billion in July 2026, compared with $2.69 billion in the same month last year, according to the Pakistan Textile Exporters Association (PTEA).

The association described the performance as "a healthy start", highlighting the textile sector as the primary driver of export growth. Textile exports increased 9% to $1.83 billion from $1.68 billion a year earlier, accounting for nearly 62% of Pakistan's total exports during the month.

While welcoming the improvement, the PTEA said the country's export potential remains significantly underutilised and called for sustained policy support to maintain growth momentum.

The association also drew attention to rising imports during July. Imports of capital goods increased by more than 43%, while raw material imports rose over 23%, developments it described as positive indicators of higher investment, industrial expansion and future export capacity.

However, the PTEA expressed concern over a more than 27% increase in consumer goods imports, warning that consumption-led import growth could widen the trade deficit without contributing to long-term productive capacity. Agricultural imports also recorded an increase of over 2% during the month.

The association stressed that Pakistan's export performance has historically been inconsistent due to structural challenges rather than temporary economic cycles. It urged the government to undertake comprehensive reforms aimed at reducing production costs, ensuring competitive energy pricing, accelerating tax refunds, improving logistics and simplifying the regulatory framework.

The PTEA further emphasized that policy consistency remains essential for attracting long-term investment, noting that exporters make investment decisions over several years. It cautioned that frequent policy reversals, delayed implementation and short-term measures undermine investor confidence and limit the country's ability to achieve sustained export-led growth.