ISLAMABAD: Pakistan’s trade deficit with nine regional countries swelled by 41.37 per cent to $9.001 billion in the first seven months (July-January) of FY26, up from $6.367bn in the corresponding period last year.

The widening gap reflects a fall in Pakistan’s exports to regional markets, driven largely by reduced shipments to China, followed by Afghanistan and Bangladesh. Trade with Afghanistan, including exports, has remained suspended since October 10, 2025.

Exports to India posted a slight increase in percentage terms, though the rise was minimal in dollar value. Meanwhile, shipments to Bangladesh and Sri Lanka declined during the period under review, according to the latest figures released by the State Bank of Pakistan.

The trade deficit with the nine countries widened by 29.42pc to $12.297bn in FY25 compared to $9.502bn in the preceding year.

The value of Pakistan’s exports to the nine countries — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives — declined by 16.86pc to $2.307bn in 7MFY26 compared to $2.775bn a year ago.

In FY25, exports to these nine countries recorded a modest increase of 1.49 per cent, rising to $4.401 billion in July to June, up from $4.336 billion in the corresponding period a year earlier.

Contrary to this, imports surged 23.69pc to $11.31bn in 7MFY26 from $9.14bn. Imports surged 20.66pc to $16.698bn in FY25 from $13.838bn over the same period of the previous fiscal year.

Further analysis showed that imports from China grew by 24.58pc to $11.097bn in 7MFY26 from $8.907bn over the same period last year. In FY25, imports from China stood at $16.312bn, up by 20.79pc from $13.504bn a year ago. The bulk of imports in the region are sourced from China, followed partially by India and Bangladesh.

Pakistan’s exports to China fell by 1.02pc to $1.467bn in 7MFY26 from $1.482bn in the preceding year.

Imports from India dipped by 9.44pc to $122.56m in 7MFY26 from $135.35m. In FY25, import from New Delhi increased to $220.58m from $206.89m in the preceding year. Meanwhile, exports remained at $2.926m, slightly increased from $0.404m.

Exports to Afghanistan dipped 59.07pc to $228.96m in 7MFY26 from $559.52m last year. Imports stood at $6.36m in 7MFY26 against $15.21m in FY25, a plunge of 58.18pc.

Pakistan’s exports to Bangladesh declined by 10.48pc to $417.62m in 7MFY26 from $466.55m over the last year. In FY25, exports to Dhaka increased by 19.08pc to $787.35m from $661.19m. Imports grew 14.02pc to $42.17m in 7MFY26 from $49.05m over the last year.

Exports to Sri Lanka dipped by 28.89pc to $184.48m in 7MFY26 from $259.43m over the last year. The imports from Sri Lanka rose by 11.63pc $38.57m in 7MFY26 from $34.55m over the last year.

Published in Dawn, February 24th, 2026