Pakistan’s trade deficit with nine neighbouring states widens 30% YoY to $12.7 billion

Pakistan’s trade deficit with nine neighbouring countries widened 30.18% year-on-year to $12.718 billion during the first 10 months of FY26, mainly driven by higher imports from China and lower exports to regional markets, according to data compiled by the State Bank of Pakistan. 

Pakistan’s exports to the nine countries declined 11.28% to $3.333 billion in July-April FY26 from $3.761 billion a year earlier, while imports from the region increased 18.63% to $16.05 billion during the review period.

The trade gap with Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives stood at $9.769 billion during the same period last year.

The widening imbalance was mainly caused by a sharp increase in imports from China, alongside lower exports to Afghanistan, Bangladesh and Sri Lanka. Imports from China rose 19.89% to $15.815 billion in July-April FY26 from $13.191 billion in the corresponding period last year.

Pakistan’s exports to China, however, increased 7.19% to $2.220 billion during the period.

Trade with Afghanistan recorded a significant decline. Exports to Afghanistan fell 64.65% to $238.87 million in July-April FY26 from $675.83 million a year earlier, while imports declined 71.54% to $6.48 million.

Exports to Bangladesh decreased 9.83% to $607.57 million, while imports from Bangladesh fell 16.26% to $57.66 million.

Shipments to Sri Lanka dropped 23.17% to $253.63 million, whereas imports from Sri Lanka increased 11.76% to $55.58 million.

Trade with India remained limited during the period. Imports from India declined 16.65% to $163.64 million in July-April FY26 from $196.35 million a year earlier.

Pakistan’s exports to India stood at $2.926 million compared to $0.52 million during the same period last year.

According to the data, Pakistan’s trade deficit with the same group of neighbouring countries had already widened 29.42% to $12.297 billion in FY25 from $9.502 billion a year earlier.