ISLAMABAD: Pakistan’s trade deficit with the Middle East increased 3.86 per cent to $5.514 billion in the first five months of 2024-25 from $5.309bn due to the rise in petroleum imports.
According to data compiled by the State Bank of Pakistan, the widening trade gap would concern policymakers mainly because of the rising arrival of petroleum products from the region.
Petroleum consumption has risen in the current fiscal year because the crude oil import surged 17.81pc in quantity in the first five months of the current fiscal year.
In FY24, the imbalance with the Middle East narrowed by 20.47pc to $13.014bn from $16.365bn over the preceding year, mainly due to lower petroleum imports amid falling consumption owing to rising local prices.
Exports to the Middle East rose 8.52pc to $1.349bn in July-November from $1.243bn over the same period last year. In FY24, the exports to the region grew 35.23pc to $3.155bn compared to $2.33bn in the preceding year.
At the same time, Pakistan’s imports from the Middle East also saw an increase of 4.74pc to $6.863bn in July-November from $6.552bn over the same period last year. In FY24, the imports declined 13.53pc to $16.16bn compared to $18.69bn in the same period the preceding year.
Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region.
The demand for Pakistani products surged in the United Arab Emirates (UAE), Saudi Arabia and Qatar during the period under review.
Exports to Saudi Arabia rose 10.08pc to $303.42m in July-Nov from $275.62m over the last year. In FY24, exports to Saudi Arabia rose 40.98pc to $710.335m from $503.851m in FY23. The imports from the kingdom saw an increase of 26.45pc to $1.496bn against $2.034bn in the same period last year.
In FY24, imports from Saudi Arabia declined by 0.01pc to $4.49bn against $4.50bn in the preceding year.
Exports to UAE increased 13.17pc to $925.59m in July-Nov from $817.85m over the last year. In FY24, exports to the UAE surged 41.15pc to $2.082bn from $1.475bn in FY23, primarily due to a significant rise in exports to Dubai.
Pakistan’s top export products to the UAE include rice, bovine carcasses, men’s and boys’ cotton ensembles, guavas and mangoes. In July-Nov, the imports from UAE also witnessed an increase of 20.35pc to $3.228bn from $2.682bn over the last year month.
Exports to Bahrain declined by 22.17pc to $22.60m in 5MFY25 from $29.04m in the corresponding period last year. The imports from Bahrain increased 132pc to $75.009m in 5MFY25 from $32.27m.
Exports to Kuwait saw a decline of 9.65pc to $37.53m in 5MFY25 from $41.54m over the previous year. However, imports increased by 41.67pc to $634.32m from $447.73m.
Pakistan’s exports to Qatar saw a negative growth of 27.4pc to $50.55m in the first five months of the current fiscal year against $69.63m over the corresponding months of last year.
Published in Dawn, January 7th, 2025
