ISLAMABAD/BEIJING – Pakistan’s exports to China rose 2% in August to $158 million, even as the country’s overall shipments fell sharply and the trade deficit widened, provisional data from the Trade Development Authority of Pakistan (TDAP) showed. In the first two months of the fiscal year 2025-26 (July–August), exports to China climbed 7% to $331 million, making it Pakistan’s third-largest buyer after the United States and the United Kingdom, according to Gwadar Pro on Sunday.
Overall exports dropped 12.5% year-on-year to $2.42 billion in August, while imports rose 6.4% to $5.29 billion. That pushed trade deficit to $2.87 billion, up 30% from a year earlier. For July–August, the deficit widened 29% to $6.01 billion. China also remained Pakistan’s top source of imports, with inbound shipments rising 33% to $2.99 billion in the first two months. Beijing thus remained both Pakistan’s biggest market for growth and its largest supplier of goods. Despite the downturn, some categories bound for global and Chinese markets showed resilience. Textiles and leather, Pakistan’s mainstay sector, earned $3.39 billion during July–August, up 10% from last year.
Bed linen, men’s apparel, cotton yarn and women’s garments led the way, while cement and dates also posted strong growth. Rice exports, however, fell by nearly a third. Regionally, exports to Asia dropped 11% in the first two months, though China bucked the trend with steady growth. Economists say Beijing’s demand for Pakistani textiles, raw materials and food products is providing a crucial cushion as traditional markets in Europe and America record declines. “China’s consistent demand has become a vital anchor for Pakistan’s exports,” economist Subhan Ahmad told Gwadar Pro. “As other markets slow, our trade with Beijing is helping sustain industrial activity and providing exporters with a reliable outlet.”
Meanwhile, Pakistan’s Ambassador to China Khalil Hashmi has underscored Pakistan’s commitment to leveraging the digital economy as a driver of inclusive growth and said, “Digital technology is not just about innovation; it is a great connector, enabling people-to-people ties and bringing technologies within reach of developing countries at affordable prices. He made these remarks while inaugurating the Digital Pakistan Pavilion at the China International Fair for Trade in Services (CIFTIS) recently in Beijing which marks a significant step in showcasing the nation’s IT capabilities on a global stage.
The pavilion, featuring 15 leading Pakistani tech firms, aims to forge strategic partnerships and highlight Pakistan’s role as an emerging player in the digital economy. He said that Pakistan is pursuing digital transformation across three key streams – education and research, business-to-business cooperation, and cross-cutting innovation in areas such as artificial intelligence, smart cities, quantum computing, Internet of Things, and green technologies, according to China Economic Net. The envoy emphasized that strategic partnerships, including collaboration with China’s IBI Group, are vital to empowering Pakistan’s SMEs and traditional industries such as textiles, agriculture, and manufacturing with digital tools to compete globally.
Ambassador Hashmi further highlighted that CIFTIS provides Pakistani firms a unique opportunity to explore business processing outsourcing, e-commerce, and fintech partnerships, while strengthening digital connectivity between Pakistan and China. “CIFTIS is a truly win-win platform,” he said, encouraging more Pakistani enterprises to seize the opportunity to expand their global footprint.
This year, 15 leading Pakistani IT and services companies are participating in CIFTIS under the Pakistan Pavilion, including Digital Softs, Microlinks Private Limited, Shajim Engineering Services & Technology, OBHost, Noor Ahmed Ecommerce Solutions, Zile Technologies, Izla Technologies, QBS Co Pvt Ltd, Trio Communication, Innovative Hub, Software Craft Pvt Ltd, ByteSole Private Ltd, World Gemstones Pvt Ltd, MK Technology, Sherdil IT Services Pvt Ltd, and Sepia Solutions.
