Pakistan’s trade deficit with seven regional partners narrows to $2.85bn — Dawn

Pakistan’s trade deficit with seven regional partner countries in the first quarter of the 2026–2027 fiscal year, covering July–September, narrowed by 26.35% to $2.85 billion. During the same period a year earlier, it stood at $3.87 billion, Dawn reports.

The deficit narrowed amid lower imports and moderate export growth. Pakistan’s exports to these seven countries rose 10.96% year-on-year, from $779.425 million to $864.878 million. At the same time, imports declined by 20.02% to $3.717 billion, compared with $4.648 billion a year earlier.

Key trading partners

According to the State Bank of Pakistan, the United Arab Emirates accounted for 66.21% of all Pakistani exports to the seven countries in July–September. Saudi Arabia’s share was 19.45%, while the combined share of the other five states was 14.34%.

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Exports to the UAE increased by 16.35%, including due to shipments to Abu Dhabi, Ajman and Fujairah. Imports from the Emirates fell by 6.15%, mainly due to lower deliveries of petroleum products and other goods. Exports to Saudi Arabia rose by 4.92%, while imports from the country declined by 18.52%.

Changes in energy imports

Payments for imports from Kuwait and Qatar saw the largest declines, falling by 97.46% and 72.51%, respectively. These two countries accounted for $947.923 million of the gross reduction in import payments. This decline was partly offset by a sharp increase in imports from Oman, up 97.40%.

Pakistan’s shipments to Qatar decreased by 22.79%, and those to Kuwait by 2.24%. Exports to Bahrain fell by 23.07%, while shipments to Jordan and Oman increased by 4.70% and 10.73%, respectively. Pakistan continues to depend heavily on energy imports from the UAE and Saudi Arabia, which together account for 90% of such purchases.