Pakistan’s exports to the United States have increased by 10.4% during the first eight months of the current fiscal year. According to official data, exports to North America rose by 9.7%, reaching $4.2 billion.

As per a report by Pakistan’s state-run PTV on Monday, a large portion—94%—of Pakistan’s exports to the U.S. comprised textiles and garments, highlighting the sector's key role in the country’s export economy. The increase is attributed to improved trade facilitation under the Special Investment Facilitation Council (SIFC) and higher demand for Pakistani goods in the U.S. market.

Government reforms in trade policy, along with SIFC support, have played a key role in this growth. The rise in exports is seen as a positive sign for Pakistan’s foreign exchange reserves and the recovery of its export sector.

On the other hand, according to Pakistani media reports, the increase in trade tariffs on Pakistani products announced by U.S. President Donald Trump could have negative impacts on Pakistan’s key exports. If the proposed tariffs are implemented, Pakistan’s price competitiveness would be severely eroded, possibly allowing regional competitors to capture its market share.

According to the Pakistan Institute of Development Economics, a storm may be brewing on Pakistan’s trade horizon, as the proposed reciprocal tariffs by the United States could have a devastating impact on the country’s export sector.

In its study, the institute cautioned that the proposed tariffs could lead to macroeconomic instability, significant job losses, and a critical reduction in foreign exchange earnings. In the fiscal year 2024–2025, Pakistan exported $5.3 billion worth of goods to the United States, making it the country’s largest single-country export market. A significant portion of these exports comprised textiles and apparel.