ISLAMABAD: Pakistan’s trade gap with nine neighbouring countries widened by 39.33 per cent to $6.221 billion in the first five months 2025-26 compared to $4.465bn in the same period last year.

The soaring deficit is mainly the outcome of a decline in Pakistan’s overall exports to regional countries, mainly led by a drop in exports to China, followed by Afghanistan. Pakistan has suspended all kinds of trade, including exports to Afghanistan, since Oct 10.

A marginal increase was also recorded in exports to India, but in value its volume is very negligible. The shipments to Bangladesh and Sri Lanka registered negative growth during the period under review, according to the latest data compiled by the State Bank of Pakistan.

In FY25, Pakistan’s trade deficit with nine neighbouring countries expanded by 29.42pc to $12.297bn compared to $9.502bn in the same period last year.

The value of Pakistan’s exports to nine countries — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives — dipped 17.05pc to $1.635 billion in July-November FY26 from $1.971bn over the same period last year.

In FY25, Pakistan’s exports to nine countries rose 1.49pc to $4.401bn from $4.336bn the preceding year.

Contrary to this, imports surged 22.06pc to $7.856bn in 5MFY26 from $6.436bn in 5MFY25.

Further analysis showed that imports from China grew by 22.90pc to $7.713bn in 5MFY26 from $6.275bn in the same period last year. In FY25, imports from China stood at $16.312bn, up by 20.79pc from $13.504bn in the preceding year. The bulk of imports in the region are sourced from China, followed partially by India and Bangladesh.

Pakistan’s exports to China fell by 6.84pc to $982.984m in 5MFY26 from $1.055bn over the same months in the preceding fiscal year. In FY25, Pakistan’s exports to China dipped 8.6pc to $2.476bn from $2.709bn in the preceding fiscal year.

Imports from India dipped by 19.11pc to $76.668m in 5MFY26 from $94.784m over the last year. In FY25, import from India increased to $220.58m from $206.89m over the last year. Meanwhile, exports to India registered an uptick to $2.926m in 5MFY26 from $0.375m over the corresponding period last year.

Exports to Afghanistan dipped 94.72pc to $210.556m in 5MFY26 from $408.585m last year. Imports stood at $8.527m in 5MFY26 against $8.527m in FY25, a drop of 34.46pc.

Pakistan’s exports to Bangladesh declined by 7.36pc to $292.119m in 5MFY26 from $315.335m over the last year. In FY25, exports to Bangladesh increased by 19.08pc to $787.35m from $661.19m. Imports grew 30.19pc to $21.73m in 3MFY26 from $16.69m over the last year.

Exports to Sri Lanka dipped by 23.57pc to $143.024m in 5MFY26 from $187.132m over the last year. Imports, however, rose 10.36pc to $28.411m from $25.742m in 5MFY25.

No data is available as most trade with Iran is conducted via informal channels. However, Pakistan has opted for barter trade amid the thriving smuggling of Iranian petroleum products and LPG via the porous border of Balochistan. No trade was observed between Pakistan and Bhutan during the 5MFY26 from last year.

Very negligible trade was recorded between Pakistan, the Maldives and Nepal during the months under review.

Published in Dawn, December 24th, 2025