Islamabad (HRNW)– The prolonged decline in exports in Pakistan is continuing to put pressure on the country’s industrial base. The five consecutive months of decline in export earnings reflect the severe pressure on export-dependent industrial sectors and overall industrial activity.
According to data released by the Pakistan Textile Exporters Association, which is based on official trade data, Pakistan’s exports in December 2025 declined by 20.41 percent year-on-year to $2.31 billion, compared to $2.91 billion in the same month last year. This significant decline reflects the severity of the ongoing economic slowdown and highlights the growing problems faced by industries dependent on external markets.
The decline in exports in December is the fifth consecutive monthly deficit during the current fiscal year 2025-26. Earlier, a decline of 14.54 percent was recorded in November, 4.46 percent in October, 3.88 percent in September and 12.49 percent in August. The continuous decline indicates that this is not a temporary situation but a long-term trend that has raised concerns about industrial capacity utilization, employment and investment.
Export-oriented industrial sectors, especially textiles, are central to Pakistan’s industry. Due to the continuous decline in export orders, many industrial units are not able to operate at their full capacity. Underutilization of capacity over a long period of time not only affects efficiency but also puts additional pressure on those enterprises that are already facing high costs and difficult market conditions.
The decline in export earnings has also affected the cash flow of industrial enterprises, which has limited their ability to upgrade machinery, adopt new technologies and improve quality. All these factors are crucial for maintaining competitiveness in the global market, especially at a time when other countries in the region are improving their production capacity and product quality. In the long term, weak exports can weaken the strength of the industry and affect its ability to respond effectively to future demand increases.
The impact of a decline in exports is not limited to factories. The slowdown in production also affects the supply chain, logistics and other related industries, which has a negative impact on the overall economy. Companies facing a continuous decline in revenue may also reduce their workforce, which is likely to affect employment and household income.
The figures for the first six months of the financial year also highlight the structural nature of the problem. Export earnings during July-December 2025-26 declined by 8.70 percent to $15.18 billion, compared to $16.63 billion in the same period last year. This indicates that the weakness in exports has been ongoing for several months.
On the other hand, imports continued to grow. Imports grew by 2 percent year-on-year in December, while they grew by 11.28 percent during July-December. The gap between the decline in exports and the increase in imports has further widened the trade deficit, adding to the overall economic pressure on industrial enterprises.
Overall, these figures show that Pakistan’s industrial base is under severe pressure due to the prolonged export weakness. This situation highlights the close link between export performance and industrial growth and the need to address structural barriers that affect competitiveness in global markets.
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