ISLAMABAD: Pakistan’s trade deficit with Gulf partner countries narrowed 26.35 per cent to $2.85bn in the first quarter of 2026-27 against $3.87bn a year earlier, largely due to lower imports and moderately higher exports.
The steepest declines were 97.46pc and 72.51pc in import payments to Kuwait and Qatar. These two countries accounted for $947.923 million of the gross decline in import payments, partly offset by the substantial increase in imports from Oman.
On the export side, the UAE accounted for approximately 66.21pc of Pakistan’s total exports to the seven countries in 1QFY27, followed by Saudi Arabia at 19.45pc. The remaining five countries collectively accounted for just 14.34pc, according to data compiled by the State Bank of Pakistan.
The Middle East conflict has disrupted Pakistan’s trade since March. Exports to most Gulf states are shrinking, while imports from them are surging—worsening Pakistan’s external vulnerability and dependence on Gulf energy and raw materials.
Lower imports, higher exports cut gap by 26pc to $2.85bn in July-September
September emerged as the sixth month after the March contraction, suggesting Pakistan’s import flows are highly sensitive to geopolitical developments, particularly in energy corridors.
Pakistan remained heavily reliant on energy imports, particularly from the UAE and Saudi Arabia, which accounted for 90pc combined. Other countries, including Qatar, Kuwait, Oman, Jordan and Bahrain, remain secondary contributors despite their export capacity.
Pakistan’s exports to the Middle East rose 10.96pc to $864.878m in 1QFY27, up from $779.425m in the same period last year. In FY26, exports to the region fell by over 2pc to $3.093bn from $3.152bn the previous year.
In contrast, imports from the region fell 20.02pc to $3.717bn in 1QFY27, down from $4.648bn a year earlier. In FY26, imports posted negative growth of 4pc to $16.413bn from $17.097bn a year earlier.
Country-wide data showed exports to Saudi Arabia grew by 4.92pc in 1QFY27 from a year ago. Imports, however, dipped by 18.52pc from Saudi Arabia, showing a clear dip in Pakistan’s imports of Saudi goods, especially oil.
A positive trend was observed in export proceeds to the UAE, which increased by 16.35pc in 3MFY27, with notable gains in Abu Dhabi, Ajman, and Fujairah. Imports from the UAE fell by 6.15pc, mainly due to lower petroleum and commodity inflows.
Exports to Qatar fell by nearly 22.79pc, while imports dipped by 72.51pc in 1QFY27 year on year. The import decline reflects a major reversal in energy-related purchases from the region.
Exports to Kuwait dipped 2.24pc, but imports plunged 97.46pc in 1QFY27. This indicates Pakistan’s reliance on Kuwaiti imports, especially petroleum, compared to a year ago.
Exports to Bahrain contracted 23.07pc, while imports also dipped 17.31pc in 1QFY27. Exports to Jordan rose by 4.70pc, while imports declined 29.27pc. Pakistan’s exports to Oman rose 10.73pc while imports surged 97.40pc during July-September.
Published in Dawn, October 25th, 2026
