ISLAMABAD (The COW News Digital) Escalating geopolitical tensions across the Middle East have begun casting a severe shadow over Pakistan’s fragile economy, delivering a significant setback to the country’s international trade performance.
Official trade data indicates that Pakistan’s total exports dropped by over $1.20 billion in FY 2025–26 compared to the previous fiscal period. National export volume contracted from $32 billion down to $30.80 billion, highlighting the direct economic fallout of regional instability on domestic production and outbound shipments.
Agricultural shipments suffered the steepest decline, with rice exports alone plunging by $1.02 billion. Overseas dispatches of textiles, refined sugar, and other key agricultural commodities also experienced sharp reductions as trade corridors faced disruptions.
Cross-border commercial channels saw a immediate impact, as exports to Gulf countries dropped by $100 million. Outbound trade heading toward Central Asia and Afghanistan witnessed a steep decline of up to 59 percent.
High-ranking officials attributed the economic slump to escalating regional friction, which sparked a surge in freight expenses, insurance premiums, and overall transit timelines. In response, federal authorities are implementing measures to reduce industrial energy tariffs and lower tax burdens to help local exporters regain competitive ground in international markets.
