ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries swelled by 36.09 per cent to $7.36 billion during the first eight months of FY25 from $5.41bn 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 the challenges posed by unfavourable governmental policies.
However, the trade gap with the regional countries widened mainly due to higher imports from China, India and Bangladesh during the months under review.
Pakistan’s exports to Afghanistan, Bangladesh and Sri Lanka surged in July-February 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 6.64pc to $3.100bn in 8MFY25 from $2.907bn over the same period last year.
Pakistan’s total exports reached to $22.07bn in 8MFY25, up 8.42pc from $20.36bn over the corresponding months last year. Pakistan’s share in total exports to the regional countries is just around 14.04pc.
Contrary to this, imports surged 25.80pc to $10.46bn in 8MFY25 from $8.32bn over the same period of the previous fiscal year.
Further analysis showed that imports from China grew by 25.87pc to $10.18bn in 8MFY25 from $8.09bn 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 10.55pc to $1.69bn in 8MFY25 from $1.89bn over the same months in the preceding fiscal year.
Imports from India increased 13.63pc to $157.73m in 8MFY25 from $138.62m over the last year. In FY24, imports from India rose 8.866pc to $206.89m — up from $190.04m in the same period last year. Meanwhile, exports to India remained at $0.41m in 8MFY25 against $0.23m over the last year.
Exports to Afghanistan increased 84.25pc to $592.84m in 8MFY25 from $321.75m last year. Imports stood at $18.21m against $5.47m in 8MFY24.
Published in Dawn, March 25th, 2025
