ISLAMABAD: Pakistan’s trade deficit with the Middle East narrowed 22.62 per cent to $8.525 billion in the first eight months of the current fiscal year from $11.017bn in the corresponding period of last year mainly due to reduced imports of petroleum products from the region.
The trade imbalance with the region has shrunk since the start of the current fiscal year due to lower use of petroleum goods as prices have steadily increased.
In absolute terms, Pakistan’s exports to the Middle East rose 35.75pc to $2.024bn between July and February 2023-24, compared to $1.491 bn in the corresponding period last year.
At the same time, imports dipped 15.66pc to $10.549bn in 8MFY24 against $12.508bn in the same period last year, according to data compiled by the State Bank of Pakistan (SBP).
Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region.
A surge in demand for Pakistani products was observed from countries like the United Arab Emirates, Saudi Arabia and Kuwait.
Pakistan witnessed a 7.24pc decline in imports totalling $17.488bn in FY23, down from $18.853bn in the preceding year. In FY23, exports to the Middle East shrank 12.62pc to $2.332bn from $2.669bn in the preceding year.
Exports to Saudi Arabia rose 47.3pc in 8MFY24 to $442.82m from $300.62m in 8MFY23. At the same time, imports from Saudi Arabia also increased by 37.16pc to $3.078bn in 8MFY24 against $2.244bn in the same period last year.
Exports to the UAE surged 41.33pc to $1.336bn in 8MFY24 from $945.27m in 8MFY23, primarily due to a significant rise in exports to Dubai. The majority of these exports were directed towards Dubai, amounting to $1.102bn this year, compared to $856.52m during the same period last year, indicating an increase of 28.66pc.
Published in Dawn, April 4th, 2024
