Trade gap with Gulf widens
ISLAMABAD: Pakistan’s trade deficit with Gulf partner countries widened by 2.61 per cent to $3.450 billion in the first two months of the fiscal year 2026-27 compared with $3.362bn in the same period a year earlier, as imports from the region outpaced exports. Export proceeds posted moderate growth, driven by gains in Jordan (34.7pc), the UAE (13.6pc), and Oman (5.9pc). Declines were observed in…
Pakistan's trade deficit with Gulf partner countries widened by 2.61% to $3.450 billion in the first two months of fiscal year 2026-27. Imports from the region outpaced exports, as the demand for Saudi goods, particularly oil, surged. Exports to the UAE increased by 13.6%, driven by gains in Abu Dhabi, Ajman, and Fujairah, while imports dropped slightly.
However, imports from Qatar, Kuwait, Bahrain, and Saudi Arabia climbed by 41.9%, 27.6%, 39.4%, and 14.7%, respectively, reflecting the impact of regional instability. Since February 28, the Middle East conflict has disrupted Pakistan's trade, with exports to most Gulf states shrinking and imports surging, deepening Pakistan's external vulnerability and dependence on Gulf energy and raw materials.
In July-August FY27, exports to the Middle East increased by 7.4% to $550.045 million, while imports rose by 3.2% to $4 billion. The UAE's deficit narrowed slightly, while Jordan and Oman maintained balanced trade trends.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
