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ISLAMABAD: Exports to nine regional countries grew by 5.10 per cent in the first month of the current fiscal year compared to the same period last year, driven largely by increases in shipments to China, Sri Lanka, and Bangladesh.
This growth is attributed to recent shifts in the regional political landscape, though trade relations with these nations have been strained in recent years due to restrictive government policies.
According to data compiled by the State Bank of Pakistan, exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives totalled $357.01 million in July, up from $339.68m in the corresponding month last year. For the FY25, exports to regional countries rose modestly by 1.49pc to $4.401bn, up from $4.336bn in FY24.
China remains Pakistan’s largest regional trading partner, accounting for 60pc of total regional exports. Shipments to China increased by 24.70pc in July, reaching $199.65m, compared to $160.10m in the same month of the previous year. However, the exports declined by 8.6pc in FY25, falling to $2.476bn from $2.709bn the preceding year.
Imports from China also saw an increase, rising by 14.68pc to $1.695bn in July from $1.478bn in the same period last year. For FY25, imports from China grew by 20.79pc to $16.312bn from $13.504bn.
Exports to Afghanistan, traditionally one of Pakistan’s top trading partners, dropped significantly by 38.23pc to $54.39 million in July FY26, compared to $88.06m last year. While Afghanistan was once the second-largest export destination for Pakistan, this drop is partly due to shifting trade dynamics and the lack of official data on trade through land routes.
Exports to Iran were non-existent via official channels in July FY26, as most trade with Tehran occurs informally through border areas in Balochistan, often in the form of barter. Similarly, exports to India remained minimal, at just $1.15m, with trade often routed through third-party markets like Dubai and Singapore, adding to costs.
Published in Dawn, August 21st, 2025
