Pakistan imports from the US climbed sharply in the fiscal year 2026, rising nearly 39 per cent as Islamabad moved to narrow its trade deficit with Washington under a new bilateral understanding. According to data compiled by the State Bank of Pakistan, imports from the United States reached $3.265 billion in FY26, up from $2.350 billion in the previous year, making the US the primary driver of Pakistan’s overall import growth from North America.
The surge comes at a time when US President Donald Trump has been reshaping global trade relationships through a fresh round of tariffs, while offering Pakistan limited relief under a reciprocal trade arrangement. Under this understanding, Pakistan agreed to increase its purchases of oil and other commodities from American suppliers in exchange for continued market access for its own exports, particularly textiles and clothing.
Trump Tariffs Reshape Pakistan Imports from the US
The rise in Pakistan imports from the US did not happen in isolation. It followed a broader shift in Washington’s trade posture, with President Trump imposing additional tariffs on several trading partners while carving out a narrower relief window for Pakistan. As part of the resulting agreement, Islamabad committed to buying more American goods, a step intended to help balance a trade relationship that had long favoured Pakistani exporters.
This commitment translated directly into the numbers. Imports under the new arrangement grew by close to 39 per cent during FY26, far outpacing the modest 1.55 per cent increase recorded in Pakistan’s exports to the US over the same period. The imbalance between import growth and export growth illustrates how quickly the trade relationship is being recalibrated in response to US tariff policy.
Pakistan Exports to the US Show Modest Growth
While Pakistan imports from the US accelerated, the export side of the ledger told a different story. Pakistan’s exports to the US rose by only 1.55 per cent in FY26, reaching $6.125 billion compared with $6.031 billion a year earlier. This marked a significant slowdown from FY25, when exports to the US had grown by a much stronger 10.72 per cent, climbing to $6.028 billion from $5.444 billion.
The United States remained by far Pakistan’s largest export destination within North America, accounting for close to 94 per cent of the country’s total exports to the region, with Canada and other markets making up the remainder. Textile and clothing shipments continued to anchor this trade relationship, though growth has clearly cooled compared with the previous fiscal year.
Trade Deficit and the New Bilateral Agreement
The core objective behind boosting Pakistan imports from the US was to reduce the bilateral trade deficit that had built up as exports consistently outpaced imports. Under the new understanding between the two countries, Pakistan is expected to keep increasing its purchases of oil and other commodities from American producers to bring the trade balance closer to parity.
Looking at the wider picture, Pakistan’s merchandise exports to North America as a whole grew by a modest 1.32 per cent in FY26, reaching $6.503 billion compared with $6.418 billion in the prior year. Imports from the region increased at a much faster pace of 6.52 per cent, rising to $3.822 billion from $3.588 billion, with the jump in American imports serving as the main driver of that growth. In FY25, exports to North America had increased by a healthier 9.97 per cent, reaching $6.415 billion from $5.833 billion, underscoring just how much the trade dynamic has shifted in the current fiscal year.
Canada and Beyond: A Mixed Regional Picture
Not every part of the North American trade relationship followed the same trajectory. Pakistan’s exports to Canada actually contracted by 2.30 per cent in FY26, falling to $377.455 million from $386.347 million a year earlier, even as exports to the US and imports from the US both increased.
Trade with Latin America also softened. Exports to the region declined by 8.32 per cent to $66.98 million, down from $73.06 million in the previous year. Within that category, exports to Central America dipped by 2.11 per cent to $165.86 million from $169.43 million, with Mexico, the main destination in the subregion, falling by 6.25 per cent to $122.03 million from $130.17 million. South America was the exception to this softer trend, with exports to countries including Argentina, Brazil and Uruguay rising by 15 per cent to $402.39 million, up from $349.88 million in FY25.
What the Trade Data Means for US-Pakistan Relations
Taken together, the FY26 figures point to a trade relationship that is being actively rebalanced rather than one that is simply expanding on its own momentum. Pakistan imports from the US are growing far faster than exports, a pattern that reflects deliberate policy choices made in response to tariff pressure from Washington rather than organic shifts in market demand.
For Pakistani policymakers, the challenge going forward will be sustaining export competitiveness, particularly in textiles, while continuing to meet the commitments made under the reciprocal trade arrangement. For now, the data compiled by the State Bank of Pakistan makes clear that Trump tariffs Pakistan has had to navigate this year have already reshaped the country’s trade landscape with its most important single export market, and the effects are likely to continue playing out through the rest of the fiscal year.
Published in SouthAsianDesk, August 3rd, 2026
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