Export disruptions signal fresh challenges
Pakistan’s export sector has come under fresh pressure after the suspension of vessel operations to Middle Eastern destinations disrupted shipping schedules, leaving hundreds of export containers stranded at ports and creating uncertainty for exporters already coping with declining shipments and rising economic pressures.
Business leaders have warned that the sudden halt in vessel movements has severely disrupted export logistics and could result in substantial financial losses for exporters, many of whom had already transported their consignments to ports in line with scheduled departures.
The disruption in shipping operations has emerged at a time when Pakistan’s export performance is already showing signs of weakness. Official data released by the Pakistan Bureau of Statistics (PBS) indicates that textile exports — the backbone of the country’s export sector — declined to $1.3 billion in February 2026.
This represented a year-on-year decrease of 7.2 percent and a sharp fall of 24.6 percent compared with January, when textile exports had reached $1.738 billion. The decline was observed across several major categories within the textile sector. Knitwear exports dropped by 14.5 percent to $312.5 million, while bedwear exports fell by 11.5 percent to $220.9 million. Towel exports also registered a notable decline, decreasing by 16.37 percent to $81.4 million. Similarly, cotton cloth exports slipped by 10.9 percent to $132.5 million.
Exports of readymade garments — one of Pakistan’s higher-value textile products — also recorded a slight decline of 0.56 percent, reaching $327.3 million compared with the same month last year. However, the textile sector was not entirely negative. Cotton yarn exports showed a significant increase of 43.6 percent, rising to $73.84 million during the month. This growth provided some support to overall textile export earnings but was not sufficient to offset declines in other categories.
Pakistan’s food export sector also experienced a downturn in February. Total food exports fell by 27.5 percent to $405.9 million compared with the same month last year. Rice exports — a major contributor to agricultural export earnings — dropped sharply by 35.4 percent to $186.7 million. Within this category, basmati rice exports declined by 19.2 percent to $71.4 million, while exports of other rice varieties plunged by 42.5 percent to $115.3 million.
Vegetable exports recorded one of the steepest declines, falling by 75.7 percent to $15.15 million. Fruit exports, however, showed marginal growth of 1.2 percent, reaching $26.9 million. Some segments of the food sector performed better. Exports of oilseeds, nuts and kernels increased by 40.7 percent to $25.95 million. Meat exports rose by 22.1 percent to $53.9 million, while fish and fish product exports climbed by 12.9 percent to $35.35 million compared with February of the previous year.
In other export sectors, sports goods exports increased by 6.6 percent to $33.25 million, largely supported by a 9.4 percent rise in football shipments that reached $20 million. Meanwhile, surgical instrument exports declined by 6.1 percent to $34 million, though cement exports posted an increase of 11.2 percent to $22.2 million.
On the import side, Pakistan witnessed mixed trends across different sectors. Imports of the petroleum group declined by 21.25 percent year-on-year to $982.8 million in February. Petroleum product imports dropped significantly by 39.3 percent to $284 million, while liquefied natural gas (LNG) imports fell by 25.25 percent to $189 million. Crude oil imports decreased by 4.55 percent to $423 million, although imports of liquefied petroleum gas (LPG) increased by 4.1 percent to $86.7 million.
Machinery imports recorded a modest increase of 4.3 percent, reaching $870.8 million. Within this category, imports of construction and mining machinery rose by 13.7 percent to $13.6 million, while textile machinery imports increased slightly by 2.6 percent to $46.4 million.
Imports of power generation machinery also rose by 8.7 percent to $68.1 million. Telecom machinery imports registered strong growth of 21.1 percent, reaching $211.5 million, including mobile phone imports that increased by 17.95 percent to $155.5 million. Agricultural machinery imports saw a sharp rise of 74.8 percent to $14 million, while imports of electrical machinery and apparatus fell significantly by 40 percent to $184 million.
Food group imports increased by 13.6 percent to $908.1 million. Palm oil imports rose by 5.3 percent to $385.6 million, while tea imports increased by 33.8 percent to $61.4 million. However, imports of spices declined by 2.1 percent to $22 million, and pulse imports dropped by 25.5 percent to $71.4 million. Meanwhile, imports in the transport sector surged by 48.8 percent to $299 million. Imports of completely built motor vehicles increased by 43 percent to $36 million, while imports of CKD and SKD vehicle kits rose by 68.5 percent to $157 million.
Beyond trade figures, Pakistan’s broader economic outlook is facing additional pressures. The country is preparing to make large external payments, including a significant oil import bill and more than $1 billion in Eurobond repayments due in April.
Despite these obligations, authorities expect the payments to be made on time without major disruption to the exchange rate, supported by steady foreign currency inflows, particularly workers’ remittances during the Ramadan period. Under the ongoing $7 billion programme with the International Monetary Fund (IMF), Pakistan has been managing imports within the limits of available foreign exchange generated through exports and remittances.
However, economists warn that several risks remain on the horizon. Rising fuel prices, tighter global financial conditions, and potential slowdowns in remittance inflows from Gulf countries could all place additional pressure on Pakistan’s fragile economic recovery.
In the coming months, the country’s economic stability will depend largely on maintaining export momentum, managing imports prudently, and sustaining remittance inflows. Policymakers will also need to maintain investor confidence and secure external financing to navigate a challenging global economic environment. In this context, resolving the current export shipping disruption and providing timely support to exporters will be crucial to safeguarding Pakistan’s trade sector and protecting the broader economy from further shocks.