Pakistan’s Trade with the United Kingdom

9th August 2021.

Pakistan’s exports to the United Kingdom increased by 33% to $2.025 billion in the fiscal year 2021 (FY21) from $1.522 billion in FY20, primarily due to material items. According to information released by the Ministry of Commerce, a large percentage of Pakistan’s exports to the United Kingdom are textiles and leather-related products.

After Saudi Arabia and the United Arab Emirates, the United Kingdom has emanated as Pakistan’s third-largest export destination, the second-largest source of foreign direct investment, and the third-largest source of remittances over the years (UAE).

Bilateral trade between the two countries has increased in recent years, exceeding $2.648 billion in FY21, up from $2.122 billion the previous year, representing a 25% increase. Pakistan export to the United Kingdom is mostly based on home textile. When compared to the same period last year, home textile exports increased by 42 percent, from $456 million to $648 million in FY 21.


Increased apparel and clothing knitted or crocheted export to the UK follows the increment in export. The export of knitted clothes or apparel increased by 57 %1 in FY21 from $397 million to $625 million, while apparel and clothing not knitted or crocheted increased by 5 percent to $304 million from $2.88 million.

Although the export of five items increased, its value-added export remained extremely low. The export of surgical instruments increased by 22% year on year to $36 million, followed by a 48% increase in eatable fruits and nuts, a 31% increase in citrus natural products, a 55% increase in furnishings, bedding, and mattresses to $30 million, and a 241% increase in refreshments, spirits, and vinegar to $20 million. However, cereal exports fell by 2%, cotton by 4%, and leather articles by 1% during the fiscal year in evaluation.

The increase in textile exports to the United Kingdom is due to the devastating effects of covid in their market. The companies realized their over-reliance on Bangladesh, India, and China had become vulnerability. Furthermore, Pakistan was the first country to resurrect its textile industry, propelling it to the forefront of the export and trade markets and profiting in comparison to competitors. In contrast, Pakistan’s imports from the UK increased by 4 percent in FY21 to $623 million, up from $600 million in FY20.

Please contact the Legal Research Institute of Pakistan for further assistance

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