{
  "id": 16425640,
  "title": "Pakistan's trade gap with Gulf partners narrows",
  "url": "https://urgent.news/2026/10/25/pakistans-trade-gap-with-gulf-partners-narrows-16425640",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-25T04:02:03.000Z",
  "source": {
    "name": "Dawn Business",
    "slug": "dawn-business",
    "url": "https://www.dawn.com/news/2039577/pakistans-trade-gap-with-gulf-partners-narrows"
  },
  "original_language": "en",
  "account": "Islamabad has reported a 26.35 per cent narrowing of Pakistan's trade deficit with Gulf partners to $2.85bn in the first quarter of 2026-27, down from $3.87bn the previous year. The primary drivers of this improvement were reduced imports and modestly increased exports. Kuwait and Qatar saw the most significant reductions in import payments, with import declines of 97.46pc and 72.51pc respectively. These two nations contributed $947.923 million towards the overall reduction in import payments. The United Arab Emirates led Pakistan's exports to the seven countries, accounting for approximately 66.21pc of total shipments, followed by Saudi Arabia at 19.45pc. The remaining five countries collectively made up just 14.34pc of exports. The Middle East conflict has disrupted Pakistan's trade since March, causing a decline in exports to most Gulf states while increasing imports from them. Lower imports and higher exports led to a 26pc reduction in the trade gap to $2.85bn in the July-September quarter of 2026. This improvement suggests that Pakistan's import flows are highly sensitive to geopolitical developments, particularly in energy corridors. Pakistan remains heavily dependent on energy imports, mainly from the UAE and Saudi Arabia, which together account for 90pc of its imports in these sectors. Other Gulf countries, despite their export capacity, remain secondary contributors. Pakistan's exports to the Middle East rose by 10.96pc to $864.878m in the first quarter of 2026-27, up from $779.425m in the same period last year. In contrast, imports from the region fell by 20.02pc to $3.717bn in 1QFY27, down from $4.648bn a year earlier. Exports to Saudi Arabia grew by 4.92pc in 1QFY27, while imports dropped by 18.52pc, indicating a decline in Pakistan's imports of Saudi goods, especially oil. Exports to the UAE increased by 16.35pc, with notable gains in Abu Dhabi, Ajman, and Fujairah, while imports fell by 6.15pc, mainly due to reduced petroleum and commodity inflows. Exports to Qatar fell by nearly 22.79pc, while imports plunged by 72.51pc, reflecting a significant reversal in energy-related purchases from the region. Imports from Kuwait decreased by 97.46pc, highlighting Pakistan's heavy reliance on Kuwaiti imports, particularly petroleum, compared to a year ago. Imports from Bahrain decreased by 17.31pc, and exports rose by 4.70pc. Exports to Oman rose by 10.73pc, while imports surged by 97.40pc during July-September, illustrating Pakistan's high sensitivity to geopolitical developments in the region.",
  "summary": "ISLAMABAD: Pakistan’s trade deficit with Gulf partner countries narrowed 26.35 per cent to $2.85bn in the first quarter of 2026-27 against $3.87bn a year earlier, largely due to lower imports and moderately higher exports. The steepest declines were 97.46pc and 72.51pc in import payments to Kuwait and Qatar. These two countries accounted for $947.923 million of the gross decline in import…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}