Pakistan’s trade deficit with neighbors rises to $4.97 billion — Dawn

In Pakistan, the trade deficit in trade with nine neighboring countries rose by 26.62% in the first quarter of fiscal year 2026–2027, to $4.97 billion from $3.93 billion in the same period of the previous year. This was reported by Dawn, citing data from the State Bank of Pakistan.

Imports grew faster than exports

In July–September, Pakistan’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives declined by 6.72%, to $944.24 million. Over the same period, imports from these countries increased by 19.79% and reached $5.92 billion.

The increase in imports from China had the largest impact on the overall deficit. Their volume rose by 19.76%, from $4.85 billion to $5.82 billion. The bilateral trade deficit with China increased by $858.808 million, accounting for approximately 82.18% of the total increase in the deficit with the nine countries.

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Decline in supplies to Afghanistan

Pakistan’s exports to China increased by 17.95%, to $663.57 million. At the same time, supplies to Afghanistan fell by 88.34%, to $18.86 million compared with $161.76 million a year earlier. Imports from Afghanistan declined by 94.4%, to $0.25 million. The publication notes that trade with Afghanistan, including exports, has remained suspended since October 10, 2025.

Exports to Bangladesh decreased by 2.96%, to $174.77 million, while imports from that country fell by 36.11%, to $13.88 million. Imports from India rose by 68.9%, to $61.74 million, while no Pakistani exports to India were recorded in the first quarter of the fiscal year.