Pakistan’s economy is beginning to feel the ripple effects of the ongoing Middle East conflict, with export performance weakening across several key sectors in recent months. According to the latest available figures, overall exports declined by 8% during the first nine months of the current fiscal year, falling to $22.74 billion. The downward trend became more evident in March 2026, when exports fell 14% year-on-year, signaling mounting external pressure amid global instability.
The food sector has been one of the hardest hit areas. Between July and March, food exports fell significantly by 34%, reaching $3.80 billion. In March alone, the sector recorded a 29.53% decline, with a monthly export volume of around $406 million.
Fruit exports dropped by 44.07% in March, with monthly figures reported at approximately $8.683 million.
Rice exports declined by 26.21%, with losses estimated at around $202 million for the month.
Vegetable exports recorded the steepest fall, plunging by 79.55%, with monthly export values ranging between $1.84 million and $10.84 million.
Pakistan’s textile industry, the backbone of its export economy, also experienced a downturn, though less severe compared to other sectors. Textile exports fell by 7.06% in March, totaling $1.32 billion for the month.
Over the July–March period, the sector posted a marginal decline of 0.50%, bringing total exports to $13.54 billion. While still under pressure, textiles have shown comparatively greater resilience amid broader export losses.
Other sectors recorded even steeper contractions. Petroleum exports witnessed a dramatic 63.57% decline in March, with monthly figures ranging between $2.47 million and $24.75 million.
Plastic goods exports also fell sharply by 36.94%, with values reported between $2.63 million and $26.38 million.
The impact extended to luxury and niche markets as well. Jewelry and ornaments saw a steep 78.93% decline in March, while overall activity in the category remained minimal, with export values fluctuating between $2.8 million and just $208,000.
The broad-based slowdown reflects increasing strain on Pakistan’s external trade, driven by disrupted supply chains, weakened global demand, and heightened uncertainty linked to the Middle East conflict.
