The trading relationship between Pakistan and the United States is changing rapidly and the data bears it out. FY26 imports from the US rose by 38.93 percent, to $3.265 billion from $2.350 billion in the previous year.
The rise in trade over the past year is particularly noteworthy in the context of the more moderate overall trade expansion. By contrast, exports to the US increased only 1.55 percent to $6.125 billion in FY26, which was $6.031 billion in FY25.
The disparity in growth rates is no accident. It goes back to a new trade understanding between the Pakistan and Washington aimed at specifically reducing Pakistan long-standing trade surplus with the USA.
Pakistan agreed to purchase larger quantities of commodities from the U.S. such as oil. That commitment being visible in the actual import data is reflected in the surge in imports in FY26.
The change follows a series of U.S. tariff increases by President Trump aimed at China and other countries, with some relief being offered to Pakistan through a new “reciprocal” deal. Such relief seems to be linked, at least in part, with Pakistan readiness to import more from the United States.
Enlarging the map to show the entire North American area, the pattern persists. Merchandise exports to North America rose by 1.32 percent to $6.503 billion in FY26 opposed to last year $6.418 billion.
The other side of the coin was quite other in the case of imports from the region. In FY26, they increased by 6.52 per cent compared with FY25 to $3.822 billion, out of which the bulk of the rise was from the US.
This trend was noted earlier in year. In the first three months of FY26 alone, import from the US increased by 23.66 percent to $2.132 billion as against $1.724 billion in the same period of last year.
North America total imports grew 33.44 percent during the same period to $2.538 billion from $1.902 billion. Over that time, exports to the region increased only 1.72 percent, further highlighting the imbalance in the trade shift.
The U.S. is by far more significant a trading partner to Pakistan in North America. This represents about 94-95 percent of Pakistan total exports to the region with Canada and other countries contributing the balance.
Interestingly, exports to Canada fell while exports to the US rose in the year. This leaves the U.S. to take on virtually all of Pakistan North American export burden.
The overall trade situation of Pakistan outside North America appeared not to be as rosy. While total imports into the country continued to rise, total exports to the rest of the world fell during the same time period.
However, there is a trade-off for policymakers as the imports-exports imbalance with the US grows. A reduction in the bilateral trade deficit will contribute to mitigating trade tensions and obtaining tariff concessions, however, it will also increase the portion of Pakistan import bill going directly towards American goods.
If rate of import increase will persist in the coming fiscal year will depend on the overall prospects of the US-Pak trade deal, and if Islamabad exports will be able to keep pace with its import targets.
