ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries surged by 43.22 per cent to $5.328 billion during the first half of the current fiscal year (FY25) from $3.72bn in the corresponding period last year.

The trade gap with the regional countries widened mainly due to higher imports from China, India and Bangladesh during the months under review.

China’s imports increased the most, while Pakistan’s exports to the same country decreased.

In contrast to last year, exports to Afghanistan, Bangladesh and Sri Lanka increased unusually. This growth has largely offset the decline in exports to China.

In FY24, the trade deficit with these countries was $9.506bn, up 49pc from $6.382bn in the preceding year.

Pakistan’s exports to Afghanistan, Bangladesh and Sri Lanka saw a paltry growth in July-December FY25. Still, exports to other countries, especially China, continued to decline during the period, according to data compiled by the State Bank of Pakistan.

The value of Pakistan’s exports to nine countries — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives — rose 7.85pc to $2.404bn in July-December FY25 from $2.229bn over the same period last year.

Pakistan’s total exports reached to $16.56bn in the first half of FY25, up 10.52pc from $14.98bn over the corresponding months last year.

Pakistan’s share in total exports to the regional countries is just around 14.51pc.

Contrary to this, imports surged 29.97pc to $7.732bn in 6MFY25 from $5.949bn over the same period of the previous fiscal year.

Further analysis showed that imports from China grew by 30.42pc to $7.541bn in 6MFY25 from $5.782bn over the same period last year. In FY24, imports from China stood at $13.506bn, up by 39.78pc from $9.662bn over the previous year. The bulk of imports in the region are sourced from China, followed partially by India and Bangladesh.

Published in Dawn, January 19th, 2025