ISLAMABAD: Pakistan’s trade deficit with the Middle East narrowed 3.92 per cent in the first half of 2025-26, driven by a slight decline in imports and exports to the region.

In absolute terms, the trade deficit contracted to $7 billion in July-December FY26 from $7.285bn over the corresponding period last year, according to data compiled by the State Bank of Pakistan.

In FY25, the deficit with the region increased 7.37pc to $13.974bn from $13.014bn the preceding year.

Exports to the Middle East fell 6.06pc to $1.502bn in 6MFY26 from $1.599bn over the corresponding months of last year. In FY25, exports to the region fell 1.52pc to $3.107bn from $3.155bn in the same preceding year.

Exports to the region fall 6pc to $1.502bn

At the same time, Pakistan’s imports from the Middle East saw a decline of 4.29pc to $8.502bn in 6MFY26 from $8.884bn over the corresponding period last year. In FY25, imports rose 5.64pc to $17.081bn from $16.169bn in the preceding year.

Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region. The demand for Pakistani products dropped in the UAE during the period under review.

Exports to Saudi Arabia fell 7.28pc to $337.927m in July-December FY26 from $364.465m over the same period last year. The imports from the kingdom saw an increase of 6.19pc to $1.919bn against $1.807bn in the preceding year.

Exports to the UAE declined 6.06pc to $1.023bn in 6MFY26 from $1.089bn over the last year. Major export products, include rice, bovine carcasses, men’s and boys’ cotton ensembles, guavas and mangoes. Imports increased by 13.24pc to $4.327bn from $3.821bn over the corresponding months of last year.

Exports to Bahrain stood at $25.159m in 6MFY26 against $26.757m in the corresponding period last year, a decline of 5.97pc. Imports rose 61.29pc $130.432m in 6MFY26 from $80.866m last year.

Exports to Qatar fell 14.28pc to $51.005m from $59.503m over the corresponding period last year. Imports also dipped 9.83pc to $1.476bn from $1.637bn.

Export to Kuwait rose 9.71pc to $65.147m in 6MFY26 against $59.385m. However, imports surged 19.82pc to $649.206m from $809.734m.

Published in Dawn, February 17th, 2026