Pakistan’s trade deficit with its nine neighbouring countries expanded by 29.42% in FY25, reaching $12.297 billion, up from $9.502 billion in the previous year.
Exports to Bangladesh, Afghanistan, and Sri Lanka saw significant growth, driven by recent regional political shifts. However, trade relations with these countries have been strained due to government restrictions. Despite the growth in exports, the overall trade gap widened, mainly due to increased imports from China, India, and Bangladesh.
Exports to the nine countries—Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives—rose by 1.49%, totaling $4.401 billion in FY25, up from $4.336 billion in FY24. However, imports surged by 20.66%, reaching $16.698 billion, up from $13.838 billion the previous year.
Imports from China grew by 20.79%, reaching $16.312 billion in FY25, compared to $13.504 billion in FY24. Pakistan’s exports to China decreased by 8.6%, falling to $2.476 billion in FY25 from $2.709 billion in FY24. Imports from India also increased by 6.62%, totaling $220.58 million in FY25, compared to $206.89 million in the previous year.
Exports to Afghanistan increased by 38.68%, totaling $773.89 million in FY25, while imports from Afghanistan surged by 116.47%, reaching $25.89 million. Pakistan’s main exports to Afghanistan included over 700,000 tonnes of sugar.
Exports to Bangladesh increased by 19.08%, reaching $787.35 million, while imports grew by 38.47% to $78.31 million. Exports to Sri Lanka dropped by 4.14%, amounting to $376.61 million, attributed to the economic recession in the country.
