Pakistan’s trade deficit with the Middle East has significantly reduced by 28.18%, amounting to $9.521 billion in the first nine months of the ongoing fiscal year, down from $13.257 billion in the corresponding period last year. This decline is primarily attributed to decreased imports of petroleum products from the region.
The narrowing trade gap with the Middle East is a result of reduced consumption of petroleum goods amidst rising prices, contributing to a more balanced trade scenario.
In terms of trade volumes, Pakistan’s exports to the Middle East have surged by 32.71%, reaching $2.276 billion during July-March 2023-24, compared to $1.715 billion in the corresponding period last year. In contrast, imports have declined by 21.2% to $11.797 billion in 9MFY24, down from $14.972 billion in the same period last year, according to data released by the State Bank of Pakistan (SBP).
The recent signing of a free trade agreement with the Gulf Cooperation Council (GCC) states aims to further reduce Pakistan’s trade imbalance with the region.
In the preceding fiscal year, Pakistan recorded a 7.24% decline in imports, totaling $17.488 billion in FY23, down from $18.853 billion in the previous year. Concurrently, exports to the Middle East contracted by 12.62% to $2.332 billion from $2.669 billion in the preceding year.
Noteworthy is the remarkable increase in exports to Saudi Arabia, showing a 44.56% rise in 9MFY24 to $516.34 million from $357.17 million in 9MFY23. In contrast, imports from Saudi Arabia witnessed a slight decline of 2.63% to $3.33 billion in 9MFY24, compared to $3.42 billion in the same period last year.
The UAE market also saw a substantial surge in exports from Pakistan, rising by 37.28% to $1.484 billion in 9MFY24 from $1.081 billion in 9MFY23, primarily driven by increased exports to Dubai. Imports from the UAE, however, experienced a significant decline of 25.55% to $4.533 billion in 9MFY24, compared to $6.089 billion in the corresponding period last year.
Additionally, exports to Kuwait witnessed a slight uptick of 1.97% to $97.31 million in 9MFY24 from $95.43 million over the corresponding months of last year. Conversely, imports from Kuwait witnessed a notable decline of 35.68% to $1.37 billion during the period under review, compared to $2.13 billion in the corresponding period last year.
Similarly, Pakistan’s exports to Qatar declined by 4.42% to $125.82 million from $131.65 million during FY23, while imports from Qatar also declined by 19.49% to $2.42 billion this year compared to $3.006 billion over the corresponding period last year.
