Pakistan’s exports to UK rise 7.41pc in first two months of FY27

Liaquat Ali

Islamabad: Pakistan’s exports of goods and services to the United Kingdom (UK) increased by 7.41 per cent during the first two months of the current fiscal year (2026-27), reaching $413.801 million against $385.224 million recorded during the corresponding period of the previous fiscal year, according to the latest data released this week by the State Bank of Pakistan (SBP).

The increase reflects continued growth in Pakistan’s export earnings from the British market, although the monthly figures indicate a decline in exports in August compared with July.

According to the SBP data, Pakistan’s exports to the UK stood at $193.545 million in August 2026, compared with $182.075 million in August 2025, registering a year-on-year increase of 6.29 per cent.

However, on a month-on-month basis, exports declined by 12.12 per cent in August 2026 compared with $220.257 million recorded in July 2026.

Despite the monthly contraction, the cumulative export performance remained positive during July-August, with shipments to the UK increasing by $28.577 million compared with the corresponding period of the previous fiscal year.

The performance of exports to the UK formed part of a broader upward trend in Pakistan’s external trade. The country’s overall exports to international markets increased by 3.97 per cent during the first two months of FY27, rising to $5.445 billion from $5.237 billion in the corresponding period of FY26, according to the central bank’s figures.

Imports from UK surge

In contrast to the moderate growth in exports, Pakistan’s imports from the UK registered a substantially sharper increase during the period under review.

Imports from Britain rose by 67.02 per cent during July-August FY27, reaching $213.534 million compared with $127.847 million in the same period last year.

On a year-on-year basis, imports from the UK more than doubled in August 2026, increasing by 112.86 per cent to $133.486 million against $62.709 million in August 2025.

The monthly figures also showed a significant increase, with imports from the UK rising by 66.75 per cent in August 2026 compared with $80.048 million in July 2026.

The sharp increase in imports contributed to a widening trade imbalance in Pakistan’s bilateral merchandise and services trade with the UK, as import growth substantially outpaced export expansion during the period.

Based on the reported figures, Pakistan recorded a surplus of approximately $200.267 million in its trade with the UK during July-August FY27, compared with a surplus of $257.377 million in the corresponding period of the previous fiscal year, indicating a narrowing of the surplus by around 22.2 per cent.

Meanwhile, Pakistan’s overall imports from all trading partners increased by 11.34 per cent during the first two months of FY27, rising to $11.634 billion from $10.449 billion in the corresponding period last year.

The latest trade figures highlight the importance of strengthening Pakistan’s export competitiveness in the British market while exploring opportunities to diversify export products, expand market access and encourage higher-value shipments.

Although the increase in exports to the UK represents a positive development, the much faster growth in imports underscores the need for sustained efforts to improve Pakistan’s export performance and ensure a more balanced expansion of bilateral trade.