Islamabad: Pakistan’s trade deficit with nine neighboring countries swelled by 36.09 percent to $7.36 billion during the first eight months of FY25, up from $5.41 billion in the corresponding period last year.
Recent regional political shifts have spurred exports to Bangladesh, Afghanistan, and Sri Lanka.
However, Pakistan’s trade with these nations has faced significant setbacks in recent years, attributed to challenges posed by unfavorable governmental policies.
The trade gap with regional countries widened mainly due to higher imports from China, India, and Bangladesh during the months under review.
According to data compiled by the State Bank of Pakistan, Pakistan’s exports to Afghanistan, Bangladesh, and Sri Lanka surged in July-February FY25. However, exports to other countries, especially China, continued to decline during this period.
The value of Pakistan’s exports to nine countries—Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives—rose 6.64 percent to $3.100 billion in 8MFY25, up from $2.907 billion over the same period last year.
Pakistan’s total exports reached $22.07 billion in 8MFY25, an 8.42 percent increase from $20.36 billion over the corresponding months last year. Pakistan’s share of total exports to regional countries is approximately 14.04 percent.
Conversely, imports surged 25.80 percent to $10.46 billion in 8MFY25, up from $8.32 billion over the same period of the previous fiscal year.
Further analysis revealed that imports from China grew by 25.87 percent to $10.18 billion in 8MFY25, from $8.09 billion over the same period last year.
The bulk of imports in the region are sourced from China, followed partially by India and Bangladesh.
Pakistan’s exports to China dipped 10.55 percent to $1.69 billion in 8MFY25, from $1.89 billion over the same months in the preceding fiscal year.
Imports from India increased 13.63 percent to $157.73 million in 8MFY25, from $138.62 million over the last year. In FY24, imports from India rose 8.866 percent to $206.89 million—up from $190.04 million in the same period last year. Meanwhile, exports to India remained at $0.41 million in 8MFY25, compared to $0.23 million over the last year.
Exports to Afghanistan increased 84.25 percent to $592.84 million in 8MFY25, from $321.75 million last year. Imports stood at $18.21 million, compared to $5.47 million in 8MFY24.
