Pakistan’s trade deficit with nine regional countries surges by 49%

Pakistan’s trade deficit with nine regional countries increased by 49% to $9.506 billion in FY24, up from $6.382 billion in the previous fiscal year, due to a sharp rise in imports from China and India, according to data from the State Bank of Pakistan.

While exports to China grew significantly during this period, exports to other regional countries continued to decline. The total value of Pakistan’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives rose by 20.02% to $4.334 billion in FY24, up from $3.611 billion in FY23.

In contrast, imports surged by 38.49% to $13.840 billion in FY24, up from $9.993 billion in the previous year, exacerbating the trade deficit with most of these countries.

Imports from China

Imports from China increased by 39.78% to $13.506 billion in FY24, compared to $9.662 billion in FY23. China accounted for 97.58% of Pakistan’s total imports from the region. 

Exports to China

Pakistan’s exports to China rose by 33.68% to $2.707 billion in FY24, up from $2.025 billion in the previous year, representing 62.45% of Pakistan’s regional exports.

Trade with India

Imports from India rose by 8.87% to $206.89 million in FY24, up from $190.04 million in FY23. Exports to India also saw a significant increase, reaching $3.669 million in FY24 from $0.329 million in the previous year.

Trade with Afghanistan

Exports to Afghanistan increased by 6.07% to $554.008 million in FY24, up from $522.271 million in the previous year. Imports from Afghanistan, however, decreased by 21.95% to $11.923 million, down from $15.277 million in FY23.

Trade with Bangladesh

Exports to Bangladesh fell by 13.27% to $666.516 million in FY24, down from $768.548 million in FY23. Imports from Bangladesh also decreased by 26.73% to $56.555 million, down from $77.182 million in the previous year.

Trade with Sri Lanka

Exports to Sri Lanka surged by 37.83% to $391.226 million in FY24, up from $283.882 million in the previous year. Imports from Sri Lanka increased by 21.53% to $58.302 million, compared to $47.974 million in FY23.

Trade with Nepal and the Maldives

Exports to Nepal decreased by 4.67% to $2.711 million in FY24, down from $2.844 million in the previous year. Exports to the Maldives increased by 7.86% to $9.212 million, up from $8.540 million in the previous year.

The rise in imports from China and India, combined with fluctuating exports to other regional countries, has led to a growing trade deficit.