ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries widened by 30.18 per cent to $12.718 billion during the first 10 months of 2025-26 from $9.769bn in the corresponding period last year.

The soaring deficit reflects a contraction in Pakistan’s exports to regional markets, largely due to reduced shipments to China, followed by Afghanistan and Bangladesh. On the import side, inflows from China recorded a strong increase during the period under review, contributing significantly to the widening imbalance.

Exports to India registered a marginal increase in percentage terms, although the rise remained negligible in dollar value. In contrast, shipments to Bangladesh and Sri Lanka declined, according to the latest data compiled by the State Bank of Pakistan. In FY25, Pakistan’s trade deficit with the same group of neighbouring countries had expanded by 29.42pc to $12.297bn from $9.502bn a year earlier.

The value of Pakistan’s exports to nine countries, Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives, declined by 11.28pc to $3.333bn in July-April FY26 compared with $3.761bn during the same period last year. In FY25, exports to these nine countries recorded a modest increase of 1.49pc to $4.401bn from $4.336bn in the preceding year. Contrary to this, imports surged 18.63pc year-on-year to $16.05bn in 10MFY26.

Imbalance with nine regional countries reached $12.72bn in July-April FY26

Imports from China grew by 19.89pc to $15.815bn in 10MFY26 from $13.191bn over the same period last year. In FY25, imports from China stood at $16.312bn, up by 20.79pc from $13.504bn over 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 grew by 7.19pc to $2.220bn in 10MFY26 from $2.071bn in the preceding fiscal year. Imports from India dipped by 16.65pc to $163.64m in 10MFY26 from $196.35m over the last year. In FY25, import from India increased to $220.58m from $206.89m over the last year.

Meanwhile, exports to India remained at $2.926m in 10MFY26, slightly increased from $0.52m over the last year. Exports to Afghanistan dipped 64.65pc to $238.87m in 10MFY26 from $675.83m last year. Imports stood at $6.48m in 10MFY26 against $22.77m in FY25, a drop of 71.54pc. Pakistan’s exports to Bangladesh declined by 9.83pc to $607.57m in 10MFY26 from $673.93m over the last year. In FY25, exports to Bangladesh increased by 19.08pc to $787.35m from $661.19m.

Imports dipped 16.26pc to $57.66m in 10MFY26 from $68.86m over the last year. Exports to Sri Lanka dipped by 23.17pc to $253.63m in 10MFY26 from $330.15m over the last year. The imports from Sri Lanka rose by 11.76pc to $55.58m in 10MFY26 from $49.73m over the last year.

Published in Dawn, May 22nd, 2026