LAHORE: Pakistan’s exports to Europe continued to rise this year, with official data showing a steady increase in demand across multiple regions of the continent.
According to the State Bank of Pakistan’s latest data, in the first four months of FY26, exports to European countries grew 5.66%, increasing from $3.004 billion to $3.174 billion. This follows the upward movement in fiscal year 2025, when exports to the EU rose 7.44%, reaching $8.863 billion compared to $8.249 billion a year earlier.
The figures indicate that Europe is purchasing more from Pakistan, with growth spread across southern, northern, and eastern Europe. Even parts of Western Europe have shown modest increases. Textiles and clothing continue to account for the bulk of the rise, reinforcing their position as the backbone of Pakistan’s export profile.
SBP data shows that Western Europe remains Pakistan’s largest export market, with Germany, the Netherlands, France, Italy, and Belgium at its core, but it showed only a marginal decline this year. Exports to the region slipped 0.2% in the first four months of FY26, edging down to $1.491 billion from $1.494 billion a year earlier.
In contrast, southern Europe continued to strengthen its position as a growth driver. Shipments to the region rose 12.19% to $1.159 billion, primarily driven by higher demand from Spain and Italy. Northern and eastern Europe also contributed to the upward trend: exports to northern Europe grew 9.84% to $257.4 million, while exports to eastern Europe rose 10.03% to $267.1 million.
The United Kingdom, however, once Pakistan’s single-largest European destination, posted a modest 1.03% dip during the period, with exports easing to $752.97 million from $760.83 million. But the broader trajectory remains positive; UK-bound exports had grown 7.19% in FY25 compared with the previous year.
A key point in the data is that the increase is not linked to US tariff changes or trade diversion. Instead, it reflects direct and sustained demand from European buyers. Despite broader economic uncertainty and slower consumer spending across the EU, Pakistan’s export orders have held firm and, in several markets, expanded.
For policymakers and exporters, the trend offers a clearer picture: Europe remains one of Pakistan’s most reliable and stable trading partners. The current data suggests that European markets are not only open but gradually increasing their sourcing from Pakistan.
As global trade faces volatility, this steady rise in European demand stands out as a meaningful and measurable positive for Pakistan’s export sector.
