Pakistan's trade deficit with regional countries marginally increases

Pakistan has experienced a slight increase in its trade deficit with nine regional states, amounting to $4.539 billion during the first seven months of the current fiscal year, up from $4.516 billion in the same period last year.

This 0.5 percent rise is primarily attributed to higher imports from China and India, despite a notable growth in exports to these countries as well as Sri Lanka.

According to the State Bank of Pakistan (SBP), while exports to the region, particularly to China and Sri Lanka, showed significant improvement, rising by 21.64 percent to $2.613 billion from $2.148 billion year-on-year, the overall trade gap widened due to a 7.32 percent increase in imports, which reached $7.152 billion.

China remains the predominant destination for Pakistani exports within the region, accounting for over 60 percent of the total. Exports to China surged by 44.55 percent to $1.726 billion, contrasting with a decline in the previous fiscal year.

However, imports from China also rose by 7.65 percent to $6.959 billion, underscoring the heavy reliance on Chinese goods.

India emerged as the second-largest import source for Pakistan, with imports increasing by 15.12 percent to $120.62 million, despite a slight decrease in exports to India.

Trade with other regional partners showed mixed results, with exports to Afghanistan and Bangladesh facing declines, whereas exports to Sri Lanka and the Maldives improved.

The trade figures highlight the ongoing challenges and dynamics of Pakistan's trade relationships within its regional neighborhood, reflecting both opportunities for growth in exports and the pressures of increasing imports on the trade balance.