The United States remained Pakistan’s top export destination during FY26, accounting for 20 per cent of the country’s total exports, even as China continued to dominate the import side of the ledger as the country’s largest source of goods and its biggest trade deficit partner. The figures, compiled by Topline Securities using State Bank of Pakistan trade data, offer a clear picture of a trading relationship increasingly split along geographic lines, with Western markets driving export earnings and regional partners supplying the bulk of imports.
According to the State Bank of Pakistan trade data, China ranked as Pakistan’s second largest export market with a 9 per cent share, roughly less than half the share captured by the United States. Despite this export relationship, the Pakistan-China trade deficit remained by far the largest of any bilateral pairing, reaching $16.85 billion during FY26, a gap driven by Pakistan’s heavy reliance on Chinese machinery, electronics and industrial inputs.
Export Markets Beyond Pakistan’s Top Export Destination
Beyond the United States and China, the export picture was more evenly distributed. Germany, Spain and the Netherlands each contributed 5 per cent of Pakistan exports FY26, while Italy accounted for 4 per cent. Bangladesh and Saudi Arabia each made up 2 per cent, and all other destinations combined represented 33 per cent of the total, underscoring how concentrated Pakistan’s export base remains around a handful of key markets even as the United States retains its position as Pakistan’s top export destination by a wide margin.
Pakistan Trade Surplus with US Leads All Bilateral Partners
The same data showed that Pakistan’s trade surplus with US partners was the largest the country recorded with any single trading partner, reaching $2.86 billion during FY26. The United Kingdom ranked second with a surplus of $1.42 billion, followed by Spain at $1.35 billion, the Netherlands at $942 million and Germany at $765 million. The consistency of Pakistan’s trade surplus with US and European markets highlights the continued importance of textiles, apparel, leather products and other manufactured goods to the country’s export earnings, sectors that have historically found their strongest demand in Western economies.
On the deficit side, the United Arab Emirates posted a $6.25 billion shortfall with Pakistan, the second largest after the Pakistan-China trade deficit, while Saudi Arabia recorded a deficit of $3.36 billion. Pakistan also posted trade deficits of $3.27 billion with Qatar and $2.24 billion with Singapore, figures that reflect the country’s continued dependence on Gulf and Southeast Asian markets for energy and other essential imports.
What the Data Says About Pakistan Exports FY26
Taken together, the figures for Pakistan exports FY26 illustrate a trade structure in which import dependence and export strength pull in different geographic directions. Imports remain concentrated among regional trading partners, particularly for energy products, machinery, industrial raw materials and electronics, while export earnings stay concentrated in the United States and Europe, where demand for Pakistani textiles, apparel and leather goods continues to underpin the country’s external trade position.
The State Bank of Pakistan trade data compiled for FY26 suggests this pattern is unlikely to shift dramatically in the near term. With the United States holding its position as Pakistan’s top export destination and China maintaining its dominant, if lopsided, role as the country’s largest trading partner overall, policymakers face a continuing challenge in diversifying both the destinations for Pakistani exports and the sources of the country’s imports, particularly as the Pakistan-China trade deficit continues to widen year over year.
Published in SouthAsianDesk, July 21, 2026
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