Trade deficit with Middle East crosses $10bn
ISLAMABAD: Pakistan’s trade deficit with the Middle East increased 10.11 per cent to $10.502 billion in the first nine months of FY25 from $9.538bn in the same period last year due to higher petroleum imports.
The growing trade deficit raises concerns among decision-makers, mainly due to the rising influx of petroleum products. Meanwhile, export growth to select countries in the region remains minimal, according to data compiled by the State Bank of Pakistan.
Petroleum consumption has risen in the current fiscal year because the crude oil import rose 14.61pc in quantity in the first eight months of the FY25 from a year ago.
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 4.47pc to $2.381bn in July-March from $2.279bn 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 grew 9.02pc to $12.883bn in 9MFY25 from $11.817bn 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 states to minimise its trade imbalance with the region. The demand for Pakistani products surged in the UAE, Saudi Arabia and Qatar during the period under review.
Exports to Saudi Arabia rose 6.95pc to $552.26m in July-March from $516.34m over the same period 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 a decline of 15.15pc to $2.828bn against $3.333bn 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 8.27pc to $1.610bn in July-March from $1.487bn 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.
Published in Dawn, May 2nd, 2025
