Pakistan’s trade deficit with Middle Eastern countries expanded by 9.89 percent to $11.731 billion during the first 10 months of the current fiscal year (July-April FY25), compared to $10.675 billion in the same period last year. This increase is largely attributed to higher imports of petroleum products, according to data from the State Bank of Pakistan.
The growing trade gap is raising concerns among policymakers, as crude oil imports surged by nearly 15 percent during this period due to increased domestic consumption. Exports to the region, however, showed only limited growth, rising by 4 percent to $2.624 billion from $2.523 billion last year.
In contrast, Pakistan’s imports from the Middle East increased by 8.76 percent to $14.355 billion, up from $13.198 billion a year earlier. Last fiscal year, imports had fallen by 13.53 percent to $16.16 billion, primarily due to lower petroleum demand caused by rising local prices.
Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) countries to help reduce this trade imbalance. The demand for Pakistani products grew notably in the UAE, Saudi Arabia, and Qatar during the review period.
Exports to Saudi Arabia rose 4.49 percent to $605.39 million, while imports from the kingdom decreased by 16.26 percent to $3.176 billion. Exports to the UAE grew by 8.67 percent to $1.779 billion, boosted largely by shipments to Dubai, while imports from the UAE surged 30.81 percent to $6.614 billion.
Conversely, exports to Bahrain fell 28.66 percent to $41.93 million, even as imports rose by 18.37 percent. Pakistan’s exports to Qatar declined by 27.87 percent to $100.51 million, while imports from Qatar increased by 7.83 percent to $2.933 billion. Exports to Kuwait also dropped by 10.84 percent to $97.59 million, with imports decreasing slightly by 1.69 percent to $1.453 billion.
